Each year, the annual reimbursement limits for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) are adjusted. These limits determine how much a small employer can reimburse an eligible employee tax-free for individual health insurance premiums and other qualifying medical expenses. It’s important for both employers and employees to be aware of these changes in order to plan benefit allowances and expenses accordingly.
2026 QSEHRA Contribution Limits
For plan years beginning in 2026, the maximum annual reimbursement under a QSEHRA is $6,450 for employees with self-only coverage and $13,100 for employees with family coverage.
QSEHRA Contribution Limits By Year
What This Means for Employers
The updated 2026 QSEHRA limits increase the maximum amount employers can reimburse for employee health expenses. Under the new IRS guidance, these updated caps apply to plan years beginning in 2026, as outlined in IRS Revenue Procedure 2025-32, § .63.
Employers offering a QSEHRA should review their plan documents, communications, and reimbursement tracking to make sure they align with these updated figures. If your plan year does not follow the calendar year, prorate the limits accordingly. Staying within the annual caps helps preserve the tax-advantaged status of the reimbursements under IRS Publication 15-B.
Looking Ahead
Because QSEHRA limits are adjusted annually for inflation, staying aware of these updates each year helps ensure your benefit strategy remains competitive and compliant. Consistent reviews also make it easier to plan reimbursements and communicate changes to employees effectively.
