Key findings include the following:

The average monthly allowance offered by employers in 2022 rose to $412 from $402 in 2021.

The longer companies offer QSHERAs, the higher the allowance they offer — an average of $448.42 at six years compared to $396.53 at one year.

Companies with one to four employees have the largest allowance at $439, compared to larger companies with up to 49 employees.

The percentage of companies that enabled Employer-Sponsored Premium Reimbursement — a feature to allow the reimbursement of another employer's group premiums so employees can be reimbursed for premiums they, their spouse, or eligible dependents have through another employer — reached 31% in 2022, an 8-point year-over-year increase.

"The 21st Century Cures Act gave small employers a more affordable way to support coverage for their employees through the QSEHRA," Victoria Glickman Hodgkins, CEO of PeopleKeep, said in a statement. "We can see through the data that companies that offer QSEHRAs utilize it more and better over time, committing to higher allowances and expanding offerings for their employees. Through the QSEHRA, small businesses can avoid the drawbacks of traditional group health insurance plans like expensive premiums, annual rate hikes, restrictive participation, and contribution requirements."

Instant Insights /

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