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In today’s competitive hiring environment, the high cost of providing health and wellness benefits can put small employers at a competitive disadvantage. Only 39% of organizations with three to nine employees and two-thirds of those with 10 to 200 workers offered health benefits in 2022, compared to 99% of large companies, a KFF survey found.

Many are turning to Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs), which enable small businesses with fewer than 50 full-time equivalent employees to provide tax-free reimbursements for their health insurance premiums and other qualifying health expenses.

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