The ICHRA: A Practical, Economical Alternative to Group Medical Insurance
An ICHRA is an Individual Coverage Health Reimbursement Arrangement. A growing number of businesses are choosing an ICHRA as an alternative that makes sense both for the company and its employees.
This is an employer-funded benefit that reimburses employees directly for their individual health insurance premiums and certain medical expenses. It’s becoming increasingly popular as it offers greater flexibility compared to traditional group health plans.
What Makes the ICHRA Better for Some Businesses?
If you have a small business, rising premiums and deductibles can make offering group health insurance impractical. It’s challenging to control costs when premiums rise each year. Plus, employees may complain that they can’t get the right coverage from the limited choices offered by group plans.
If you’re tired of rising premiums or are just beginning to add a health benefit, take a moment to understand the advantages of an ICHRA.
Is an ICHRA Better than a Group Plan for Your Company?
With an ICHRA rather than group health insurance:
- Your business can budget health insurance costs instead of being impacted by price increases and better control costs.
- Employees can choose a Marketplace plan that fits their medical and family needs.
- Employees are no longer limited to a one-size-fits-all group plan, but get to choose from dozens of different plans.
- The company reimburses employees a set amount for their health insurance.
- The reimbursement is tax-deductible and not subject to payroll taxes.
- There are no minimum participation requirements.
- There’s no group policy to manage.
Why Do Employees Like ICHRAs?
Employees like the fact that they can choose a plan based on the doctors they want or their prescription needs. They can also select plans with the deductibles and out-of-pocket costs they prefer. This is especially useful in areas where individual market plans are strong, or for an employee with a need for specific doctors or services.
Employees can also retain their coverage if they leave the company. And remote employees who might not qualify for a group plan can choose plans in their local areas. It also allows that if using the subsidy puts them or their family in a better situation they can opt out of the ICHRA.
The Advantages of Setting Up an ICHRA with MBhealth
1
We consult with you to help you set up the best ICHRA plan for your company and employees. Our focus is 100% on the needs of your company, because we only find the ICHRA that’s the best fit for you.
2
We continue to work with you, year after year. We’ll help you adapt this benefit as your company’s size and needs change.
3
One of our agents is dedicated to helping employees enroll in the best plans for their needs. We know it can be confusing and overwhelming to choose from as many as 50 different individual or family plans. MBhealth’s personal care cuts through the confusion while improving satisfaction and retention.
4
We understand the ACA rules and other requirements related to an ICHRA and can ensure that you are in compliance.
Contact MBhealth to Set Up Your ICHRA Today!
If you’re ready to learn more about ICHRAs and their benefits, call us for a consultation! We’ll show you how to save money while giving your employees better coverage. Call us at (314) 794-7977
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