Employees know their QSEHRA benefit is valuable when they can expense their medical expenses for tax-free reimbursement. It is easy to understand how to submit a claim and apply the expense towards their monthly allowance. But many employees wonder, what happens to their benefit if they submit an expense larger than their monthly allowance?
When the expense is bigger than the QSEHRA monthly allowance...the good news is that you can submit expenses that are bigger than your monthly allowance! When you submit a claim that is larger than your monthly allowance, you can be reimbursed for that expense over several months. Even better, you only need to submit that claim one time! When you submit the claim, we enter the full amount of funds to be reimbursed over time (maxing out your allowance each month until your claim is exhausted).
Take Command will track how much of it has been paid out and how much you are owed. Each month, as your allowance is unlocked, it will be applied towards your large bill.
For example...
Renee is entitled to $300 per month in tax-free health reimbursements. Her company has set up the HRA to reimburse her for both monthly premiums and additional medical expenses. Her monthly premium is only $150 per month, but she submitted a $1,500 bill after an appointment with a specialist. Each month, after her premium is reimbursed, the additional $150 will be applied toward reimbursing her for that large out-of-pocket bill from the specialist.
Another way to look at it is that Take Command will automatically max out the $300 per month reimbursement allowance on Jane's employer's report until the claim is paid out.
Understanding your benefit
Do you have more questions about the QSEHRA benefit? We have a variety of blogs written expressly for employees to help you understand your tax-free reimbursement and how it works.
Employee guide, filing an expense claim, and not claiming your full reimbursement each month are great resources to get started learning more about your new benefit.
Another great resource for you is the reimbursement rules chapter in our handy new QSEHRA Guide!
Our team is on hand to clear up any confusion you have about QSEHRA. Click the orange button below to get in touch.
Let's talk through your HRA questions
I wrote this blog because I love helping people decode confusing insurance jargon and understand the fine print. I'm a licensed health insurance professional and specialize in simplifying health insurance for individuals and small businesses. My QSEHRA articles have been featured regularly on Accounting Today, Accounting Web, HRWeb, and other industry publications. I'm also a member of Take Command Health's client success team and a full-time mom. Learn more about me and connect with me on our about us page. Thanks!
