Take Command Health, an HRA administrator that offers employee enrollment support, unveiled its annual QSEHRA report just in time for open enrollment. Now more than ever, small businesses are looking for ways to help their employees by providing benefits on a budget that works for them. The Qualified Small Employer HRA (QSEHRA) is based on small business owners reimbursing their employees for health insurance rather than buying it for them.
“Last year, our clients offered their employees nearly $12 million in benefits through a QSEHRA,” shares Jack Hooper, CEO, Take Command Health. “This is a flexible alternative to expensive small group plans that offers budget control and predictability for employers and plan choice, and portability for employees.”
Key findings include:
- Professional services, associations and nonprofits, healthcare providers and services, tech and financial services lead in signups
- Employer size ranged from 1-36 employees, with the average being four employees
- California, Texas, North Carolina, New York and Florida lead in signups
- Average monthly reimbursement is $332.58 for singles, $491.72 for couples, $505.52 for families
- Utilization rates were just under 64%, meaning that employees aren’t using their full benefit (the employer keeps the leftover funds)
- Recent client survey found that 1 in 5 clients who responded are women-owned businesses, 1 in 10 are veteran-owned businesses and 1 in 13 are minority-owned businesses
“We’re seeing QSEHRA signups continue to trend upward despite the pandemic and economic uncertainty,” adds Hooper. “Carriers are returning to markets, individual premium prices are stabilizing and awareness is growing.”
NATP offers an on-demand webinar (free for Premium level members) called Navigating Employer-Provided Health Insurance that will help you navigate the contributions, limitations, distributions and eligibility for HSAs, FSAs, HRAs, QSEHRAs, as well as self-employed health insurance deductions. Take Command Health also offers an ICHRA report and an ICHRA guide for those interested in learning more.
About Take Command HealthTake Command Health is on a mission to accelerate the adoption of the reimbursement model of health insurance to help create a consumer-centric healthcare system based on awareness, advocacy and transparency. Launched in 2014 in Dallas, Take Command Health is a recognized leader in QSEHRA administration, launched the first-to-market Individual Coverage HRA platform, champions affordable small business health insurance options and is the only HRA administrator to also offer individual enrollment support.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.