Yes. A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) may generally reimburse dental insurance premiums, as long as the expense is an eligible medical expense under the plan and applicable IRS rules.
Many employers think of a QSEHRA only as a way to reimburse health insurance premiums. However, a properly designed QSEHRA can often provide broader healthcare reimbursement benefits, including certain dental and vision expenses.
What Is a QSEHRA?
A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) allows eligible small employers to reimburse employees for qualified medical expenses and individual health insurance premiums.
A QSEHRA is commonly used by employers that:
- Have fewer than 50 full-time equivalent employees.
- Do not offer a group health plan.
- Want to provide healthcare benefits without sponsoring traditional health insurance.
The employer sets a reimbursement allowance, and employees submit eligible expenses for reimbursement.
Can a QSEHRA Reimburse Dental Insurance Premiums?
Yes.
Dental insurance premiums are generally considered eligible medical expenses under Section 213(d) of the Internal Revenue Code.
If included as an eligible expense under the employer’s QSEHRA plan, employees may be reimbursed for the cost of dental insurance premiums.
This can include:
- Employer-sponsored dental coverage paid by the employee.
- Individual dental insurance premiums.
- Other eligible dental expenses, depending on the plan design.
What Dental Expenses Can a QSEHRA Reimburse?
In addition to dental insurance premiums, a QSEHRA may reimburse other eligible dental expenses, such as:
- Dental cleanings
- Exams
- Fillings
- Crowns
- Dentures
- Orthodontia
- Other qualified dental care expenses
The expense must meet the requirements of the plan and applicable IRS rules.
Can a QSEHRA Reimburse Standalone Dental Insurance?
Yes.
Many employees purchase dental insurance separately from their medical coverage.
A QSEHRA may be used to reimburse eligible individual dental insurance premiums, even if the employee’s medical coverage and dental coverage are purchased separately.
This can be especially helpful for employers who want to give employees flexibility in choosing their own coverage.
Does a QSEHRA Have to Reimburse Dental Expenses?
No.
Employers have flexibility when designing their QSEHRA.
A QSEHRA may be designed to reimburse:
- Individual health insurance premiums only.
- Health insurance premiums plus other qualified medical expenses.
- A broader range of eligible medical expenses.
The employer chooses the eligible expense categories when establishing the plan.
Can a QSEHRA Reimburse Vision Insurance?
Yes.
Similar to dental insurance, vision insurance premiums are generally considered eligible medical expenses.
Depending on the plan design, employees may be able to use QSEHRA funds for:
- Vision insurance premiums
- Eye exams
- Prescription glasses
- Contact lenses
- Other eligible vision expenses
Why Include Dental and Vision in a QSEHRA?
Including dental and vision expenses can make a QSEHRA more valuable to employees.
Benefits may include:
- Greater employee flexibility.
- Support for employees who need dental or vision coverage.
- A more comprehensive benefits package.
- Better employee perception of the benefit.
For employers competing for employees without offering a traditional group health plan, these additional benefits can make a QSEHRA more attractive.
How Does a QSEHRA Compare to Traditional Dental Benefits?
A traditional employer-sponsored dental plan usually requires the employer to select a carrier and establish a group plan.
A QSEHRA provides more flexibility by allowing employees to select their own eligible coverage and expenses.
| Traditional Dental Plan | QSEHRA |
| Employer selects the plan | Employees may select their own coverage |
| Employer manages a group contract | Employer provides reimbursement allowance |
| Less individual flexibility | More employee choice |
| Fixed benefit structure | Defined employer contribution |
The right approach depends on the employer’s goals and workforce.
How Empower Helps With QSEHRA Administration
Empower helps small businesses establish and administer QSEHRAs that provide employees with flexible healthcare reimbursement options.
We assist with:
- QSEHRA setup
- Plan documents
- Employee communication
- Claims processing
- Reimbursement administration
- Ongoing support
Our team helps employers provide valuable benefits without the complexity of managing a traditional group health plan.
Questions About QSEHRA Reimbursements?
If you’re considering a QSEHRA and want to understand what expenses can be reimbursed—including dental and vision expenses—Empower can help.
Contact us to learn how a QSEHRA can help your small business provide flexible healthcare benefits to employees.
