New PeopleKeep Report Shows QSEHRA Is Powering Health Benefits for Underserved Small Employers
INDIANAPOLIS, May 6, 2025 /PRNewswire/ — PeopleKeep, the software-driven product line of Remodel Health, has released its eighth annual report on the qualified small employer health reimbursement arrangement (QSEHRA), shedding light on how small employers are leveraging this flexible health benefit to offer meaningful coverage to their teams.
While attention in the health benefits space has increasingly focused on the rise of the individual coverage HRA (ICHRA), the QSEHRA remains a strong fit for small employers—especially those offering a benefit for the first time and seeking a simple, cost-controlled solution.
The 2024 report draws on proprietary data from PeopleKeep customers and their employees using a QSEHRA between January 1 and December 31, 2024. Highlights include:
Employer generosity is growing : Since 2019, employers have increased their average monthly QSEHRA allowance by 49% .
: Since 2019, employers have increased their average monthly QSEHRA allowance by . Premium reimbursement flexibility : 43% of employers are enabling reimbursements for employees covered through a spouse's employer-sponsored plan.
: of employers are enabling reimbursements for employees covered through a spouse's employer-sponsored plan. Younger-than-average workforce : The average age of QSEHRA recipients is 39 , lower than the national median age of American workers, which is 42 .
: The average age of QSEHRA recipients is , lower than the national median age of American workers, which is . Premiums lead spending : 65% of allowances were used to pay for health, dental, and vision insurance premiums.
: of allowances were used to pay for health, dental, and vision insurance premiums. Bronze and gold plans dominate: Most employees used their QSEHRA to purchase bronze or gold-level individual plans, with HMO networks as the most common choice.
'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,' said Austin Lehman, CEO of Remodel Health. '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.'
As part of Remodel Health, PeopleKeep offers modern HRA administration software that makes it easy for small employers to design, launch, and manage benefits like QSEHRA with minimal administrative burden. The platform empowers employees to choose the health coverage that fits their needs while giving employers full control over costs.
The full report is available for download at peoplekeep.com/offers/qsehra-report.
About PeopleKeep
PeopleKeep, powered by Remodel Health, provides health reimbursement arrangement (HRA) administration software that helps small employers offer flexible, tax-free health benefits. PeopleKeep's tech-forward platform is purpose-built for employers looking for a simple, scalable alternative to traditional group health insurance.
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SOURCE Remodel Health
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