The Power of QSEHRA: Transforming Health Benefits for Small Employers in America

In recent years, the healthcare landscape for small employers has changed dramatically, particularly with the introduction and evolution of the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). According to the latest report from PeopleKeep, a trusted name in health reimbursement arrangements powered by Remodel Health, the QSEHRA is proving to be an instrumental resource for small businesses looking to provide meaningful health benefits to their employees.

The recent report highlights several noteworthy trends and statistics that point to the value QSEHRA is generating in the small business sector. Notably, since 2019, there has been a staggering 49% increase in the average monthly contribution by employers to QSEHRA plans. This increase indicates not only the willingness of employers to invest in their employees' health but also a growing recognition of the value that health benefits bring to employee satisfaction and retention.

One of the features that make QSEHRA particularly appealing is its flexibility when it comes to premium reimbursements. The report reveals that approximately 43% of employers now offer reimbursement options for employees covered by a spouse's employer-sponsored health plan. This flexibility caters to employees' unique family situations, allowing them to seek the best coverage options that suit both their personal and financial needs.

Additionally, the demographics of the QSEHRA recipients indicate an interesting trend. The average age of individuals taking advantage of the benefits stands at 39 years old, which is notably younger than the median age of American workers, recorded at 42. This statistic may reflect the increasing number of younger employees who are entering the workforce and seeking meaningful health benefits as a priority in their employment journey.

When it comes to spending, the report shows that most of the allowance provided through QSEHRA—about 65%—was allocated towards covering health, dental, and vision insurance premiums. This highlights the significant role that health coverage plays in employees' overall benefits package and underscores how critical QSEHRA is in empowering employees to make healthcare choices that best fit their needs.

Moreover, data indicates that bronze and gold level plans are dominating the choices made by employees. Most recipients preferred to use their QSEHRA allowances towards purchasing bronze or gold-level individual plans, with many opting for Health Maintenance Organization (HMO) networks. This suggests that employees are making informed choices to ensure they receive robust coverage while balancing costs effectively.

Austin Lehman, CEO of Remodel Health, emphasized the significance of QSEHRA during these evolving times: “QSEHRA continues to be a powerful tool for small employers who want to do right by their team but can’t afford or don’t qualify for a traditional group plan. This report shows that more small employers are stepping up to offer coverage—often for the first time—and using QSEHRA to do it on their terms.”

The functionalities offered by PeopleKeep's platform enable small employers to design and manage their health benefits with less administrative burden. Their modern HRA administration software facilitates the launch and maintenance of a QSEHRA plan, making it a straightforward solution for businesses otherwise struggling to provide adequate health benefits.

For employers, this is a robust step towards investing in their workforce. The ability to offer flexible, tax-free health benefits through a platform that empowers employee choice not only improves morale but can also enhance team loyalty and productivity.

The full report can be accessed for further insights into the emerging trends within the QSEHRA framework at peoplekeep.com/offers/qsehra-report. As small employers continue to navigate the complex world of health benefits, QSEHRA stands out as a credible tool in fostering healthier workplaces without compromising financial sustainability.

This report illuminates an important dimension of employee healthcare that has often been eclipsed by the rise of alternative reimbursement arrangements. With the insights provided by PeopleKeep, small employers can confidently enhance their offerings and embrace competitive advantages that foster employee health and satisfaction.