Defined Contribution Health Plans – ICHRA, QSEHRA, TASC NESP
Defined Contribution Health Plans are a modern, flexible way for employers to offer health benefits while maintaining control over their healthcare budget. Instead of providing a traditional group health insurance plan, employers set a fixed amount—known as a defined contribution—that employees can use to purchase their own individual health insurance or pay for qualified medical expenses.
Our agency specializes in three popular Defined Contribution Health Plan options: ICHRA, QSEHRA, and TASC NESP.
ICHRA (Individual Coverage Health Reimbursement Arrangement) allows employers of any size to reimburse employees for individual health insurance premiums and medical expenses on a tax-free basis. It offers maximum flexibility, including different benefit levels for employee classes (e.g., full-time, part-time, seasonal), and helps employers meet ACA compliance requirements.
QSEHRA (Qualified Small Employer HRA) is designed specifically for businesses with fewer than 50 full-time employees. It enables small business owners to offer tax-free reimbursements for health insurance premiums and eligible out-of-pocket costs without the complexity of a group plan. It’s simple, budget-friendly, and a great way to attract and retain talent.
TASC NESP (National Employers Solution Plan) is a fully managed defined contribution solution that simplifies compliance, administration, and documentation. It’s ideal for employers who want a hands-off approach with the confidence that all IRS and DOL regulations are being met.
With Defined Contribution Health Plans, your business gains predictable healthcare costs, reduced administrative burden, and the ability to offer personalized health coverage. Employees enjoy freedom of choice, tax advantages, and the ability to select a plan that fits their unique needs.
We’re here to help you choose the right solution and make the transition seamless. Let us show you how Defined Contribution Health Plans can work for your business.