Why More Small Employers Aren’t Using QSEHRAs

Back in 2016 Congress created qualified small employer health reimbursement arrangements (QSEHRAs) to enable companies with fewer than 50 employees to reimburse their workers for individually-obtained coverage up to a set dollar limit each year. A recent study by TakeCommandHealth, a company offering QSEHRA administration, found the top reasons why small employers aren’t using QSEHRAs: owners can’t participate (20%) and employees are not eligible (20%). Another 19% want to offer a group plan. Yet for eligible employers, QSEHRAs are a good health coverage option.