The document discusses a survey of small employers (1-49 employees) regarding their use of health reimbursement arrangements (QSEHRA) and benefits budgeting. Key findings indicate that the top reasons for selecting QSEHRA include ethical considerations and the high cost of group insurance, while employers prioritize increasing wages and health reimbursement allowances. Additionally, many small businesses plan to increase benefits, although a significant portion do not plan any increases due to budget constraints.

1. The top five reasons employers selected a
health reimbursement arrangement include
“It’s the right thing to do.”
Small Business Benefits Landscape
The data from this study were sourced by a June 2019 online survey of 400 U.S.-based qualified small employers (1-49
employees) who were currently offering a QSEHRA to employees. This research was generated by PeopleKeep.
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How are small businesses thinking about, prioritizing, and
budgeting for health and non-health benefits in 2019?
21.6%
It’s the right
thing to do
21.6%
Group insurance is
too expensive
20.1%
Overall
employee retention
12.2%
Overall
employee recruiting
6.9%
Retain one or two
existing employees
41.8%
Increase wages
17.6%
Increase health
reimbursement allowance
14.0%
Add another benefit
15.9%
Add retirement benefit
5.3%
Increase retirement benefit
5.3%
Contribute to employees'
health savings accounts
Top priorities for small businesses that anticipate
having extra budget are increasing wages (41.8%)
and increasing health reimbursement
allowances (17.6%).
27.7%
reimburse cell phone expenses
13.4%
reimburse for
commuter / transit expenses
61.0%
reimburse for professional
development / continuing
education expenses
In addition to health benefits, small business
employers are reimbursing other expenses...
of small businesses are prioritizing
increasing benefits in the
next 12 months.
1 in 10 have already planned increases.
Over half see benefits increases as likely to occur.
of small businesses do not plan on
increasing benefits in the
next 12 months.
47.6% cited lack of budget
23.8% recently made increases
21% don’t think this is necessary
7.7% cited other reasons