5 Steps for successfully communicating with your employees about the QSEHRA

Written by: PeopleKeep Team
Originally published on April 11, 2017. Last updated May 12, 2023.

This post is a summary of a section from our eBook, The Comprehensive Guide to the QSEHRA

If you’re ready to offer the qualified small employer health reimbursement arrangement (QSEHRA), sometimes called the small business HRA, to your employees, it’s important to communicate your new benefits to your workers. After all, you want your employees to take advantage of the benefits you’re offering, and you certainly don’t want them to perceive changes as a reduction in health benefits—something that can happen if employees don’t get the information they need.

With this in mind, here are five steps to effectively communicate your new QSEHRA to your employees.

1. Communicate early and often

The early bird gets the worm and, in this case, gets more people on board with the QSEHRA. Don’t delay reaching out to your workers about their new benefit. Options for spreading the word include group presentations, emails, brochures, and even one-on-one meetings.

2. Announce your new benefit

When you’re ready to make the switch to the HRA, let everyone know with a company-wide letter.

Important points to hit include:

  • Defining the QSEHRA
  • Defining small business health insurance
  • Explaining why you’re making the switch
  • Explaining how the QSEHRA works
  • Explaining how employees go about purchasing individual health insurance
  • Giving the date your company’s existing policy will be canceled and the date the HRA will begin

Provide a custom employee welcome letter

Once you’ve notified the company, it’s time to make things personal. Send individual employees a custom welcome letter that offers detailed information on how the QSEHRA works and how the HRA will benefit them.

You should also follow the individual letters with one-on-one meetings. Your employees are likely to have a lot of questions, so be prepared to provide in-depth answers. If you’re unsure where to start, check out our list of 6 FAQs on Small Business HRA Reimbursement.

Help employees purchase individual policies

If your employees are accustomed to group health insurance, the prospect of buying their own individual health insurance may be daunting. Ease them through this transition by pointing them toward resources that will help them choose an appropriate policy.

Keep in mind, however, that federal law prohibits employers from getting involved in the decision-making process. You can give your employees information, but you can’t help them choose a policy.

Use your QSEHRA to hire new employees

The QSEHRA can be an effective recruitment tool when it comes to identifying and retaining top talent. Research shows that employees in every demographic value health insurance above all other benefits.

However, not all prospective employees will be familiar with the QSEHRA. Educate potential employees about the HRA and highlight what it has to offer in a letter that briefly explains the HRA and how it works.


Change can be challenging, and switching from a group health plan to the QSEHRA is no exception. By communicating early, clearly, and often with your employees, you can help them weather the transition with ease.

Ready to offer a QSEHRA to your employees? Schedule a call with a personalized benefits advisor today!


Originally published on April 11, 2017. Last updated May 12, 2023.


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