What employers need to know about an ICHRA. With healthcare costs increasing and retention and recruitment efforts becoming more challenging, many employers are left wondering what cost-saving strategies they can adopt, without transferring the burden to employees. While traditional plans continue to work for some businesses, others find these plans don’t meet their employee’s needs and continue to prove costly. As an employer, you have options.
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a type of health insurance reimbursement arrangement that gives employers an alternative option to a traditional plan. With an ICHRA, employers can reimburse their employees the cost of some, or all, of the premiums they pay on their own. Although certain criteria apply, this arrangement can be a great option for those employers who may be at risk of ACA non-compliance fines for large employers or those looking to satisfy a diverse population, such as a multigenerational workforce.
Allowing the flexibility of choice– for employers and employees.
Personalization and flexibility are key components in today’s benefit programs and with a wide range of individual needs, employers may wonder how they can address these demands while staying within budget. An ICHRA could be the answer. Some benefits of an ICHRA include:
To qualify for an Individual Coverage Health Reimbursement Arrangement employees and their families must be enrolled in an individual health coverage plan, or Medicare, which must be verified annually. An ICHRA cannot be offered along with a traditional plan to employees in the same class, or group. Other guidelines and limitations do apply, such as HSA compatibility and FSA eligibility, therefore employers are encouraged to speak to a trusted advisor.
At Conner Insurance we take the time to discuss how an ICHRA can work for your business and answer any questions you may have. Training and educational services for HR staff and employees can help lessen any uncertainty employees may have when changes are made. When choosing an Individual Coverage Health Reimbursement Arrangement, you can be sure to receive guidance and support along the way.
Healthcare costs are skyrocketing and businesses are feeling the strain. Employers need a solution that combats high costs while remaining competitive within the industry. With an ICHRA, employers can choose the reimbursement amounts that suit their business and employees can choose the insurance they actually need.
If you are interested in knowing what an ICHRA can do for your business, let’s chat.
The proposed class action against Johnson and Johnson has shed light on the importance of…
Weight loss drugs and your benefits - what employers should know. For the millions of…
Errors in Medical Billing When an employee or their loved one becomes ill or has an…
Streamline Your Benefits with Integrated Programs. Whether you're looking to reduce errors, streamline processes, or…
MAXIMIZE YOUR NEGOTIATION POWER.Maximize your negotiation power. Whether you are fully insured or self-funded, you…
ARE YOU PARTNERED WITH THE RIGHT PEOPLE?Are you partnered with the right people? The collaboration…