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As a business owner at the helm or Human Resources professional, you see the inherent benefits of transitioning to an Individual Coverage Health Reimbursement Arrangement (ICHRA) for your company. With significant savings to the company bottom line and increased predictability to control annual employee benefits costs, it’s a no-brainer for small and large organizations alike. But what about the employees? Will your staff embrace the ICHRA model with the same enthusiasm?

They probably will. The ICHRA is equally beneficial to those staff members who participate. And today, we’ll highlight three of the most significant reasons you can expect your employees to love your ICHRA plan. After all, it’s only a great benefit if your employees find value in its offerings.

Employees Benefits & Flexibility

At the company bottom line level, the ICHRA offers a ton of flexibility and predictability in forecasting and managing benefits costs. But it also provides similar benefits to your employees. And your team members will love having the reins when it comes to their needed benefits and coverage options.

More Employees Can Participate
One of the most evident and significant benefits of having an ICHRA for your employees is the ICHRA inclusion of everyone. You can determine how your ICHRA will work but ultimately will be able to offer the reimbursements to full-time, part-time, seasonal, and even temporary workers. Traditional group plans would often only be available to full-time employees, leaving very few benefits options for the other integral members of your teams who are classified differently.

Choose the Marketplace Plan They Want
The ICHRA plan is not health insurance. But the reimbursement model does require participating employees to enroll in their own plans. Your employees will absolutely love having the option to browse the marketplace for the catered plan that fits their specific health coverage needs, cooperates with their doctors, and meets their budgets. A traditional group plan would be the one-size-fits-all approach to coverage that wouldn’t always be helpful to everyone on your teams.

Choose the Expenses
Employees who participate in your ICHRA can manage their own out-of-pocket expenses. Based on the ICHRA monthly allowance you establish, as well as your qualified expense definitions, individuals can determine which receipts to submit for reimbursements. Those reimbursements are free of both income tax and payroll tax, making it a win-win.

What Is Catastrophic Health Insurance All About?

ICHRA programs make health insurance and overall healthcare more affordable. Each employee will have a varying amount they deem affordable. But the system itself allows for reduced costs at nearly every level of engagement within the healthcare and health insurance cycle.

No More Paying Hefty Premiums
Employees will love taking home more of their paychecks now that those old group plan premiums aren’t being deducted. And they’ll equally enjoy choosing what kind of plan and monthly premium payment they want via the marketplace. As a business, you’ll likely enjoy avoiding those umbrella payments for staff coverage that didn’t always cater to the employee-specific needs, as well.

Only Pay & Get Reimbursed for Actual Services
There is something reassuring about only paying for and getting reimbursed for the services you actually need. The employee visits his doctor for a routine health check-up. His marketplace insurance plan considers the visit a preventative care trip and covers the cost entirely. As part of his visit, the doctor orders labs and prescribes a prescription. The receipt from the pharmacy for his meds is submitted through the ICHRA for reimbursement. The employee gets, pays for, and is reimbursed for a specific round of services.

Household Budgets Made Easy
When it comes to affordability, your employees will appreciate just how easy the ICHRA can help them manage their household finances. They will be selecting their own ACA plan within their budget parameters. And they can easily calculate which expenses will be reimbursed and which they can calculate as true out-of-pocket expenses.

An Easier Process & Layers of Support

With the traditional group plans, there is sometimes a disconnect between employees who need help or have questions and the insurance provider. The ICHRA model allows for a more streamlined communication strategy, with layers of support. This makes the health insurance and reimbursement process easier for your employees.

A Dedicated Internal Contact
Because your company owns the ICHRA and designed its guidelines, you can have an internal contact as a designated point of contact for ICHRA support. Your employees can ask your benefits coordinator about clarifications or reimbursements. They’ll love having a company face to turn to when they need help.

A Third-Party Administrator
You can also partner with a third-party administrator to help set up, manage, and analyze your ICHRA platform. This can also mean having a knowledgeable liaison to make sure your employees are making the most of their ICHRA benefits. TPAs can additionally help your company establish an employee-facing dashboard, where staff can log in, view reimbursements, and track those payments. Having transparency and access like this can be a huge asset to your participating employees.

Seamless Reimbursements
There won’t be any guesswork in issuing and managing those reimbursements. When you set up your ICHRA, you’ll select your monthly budgets and allowances. You can then allocate precisely what you need to in order to fund the reimbursements submitted by your employees. Employees will definitely appreciate a seamless process in tracking those receipt of funds, too. Many companies issue payments monthly or with regular paychecks. It’s the ICHRA model that allows for a dependable and reliable flow and expense management.

There is no question that your company will benefit from implementing an ICHRA platform. But it may help solidify your decision to move away from your traditional group plan, knowing just how much your employees will love the reimbursement model. And if you need help getting started with your ICHRA plan or want to explore TPA partnership options, contact W3LL! From analytics to employee opt-in statistics, we can help you set up, manage, and grow your ICHRA in a way that everyone will continue to love it in the years to come.


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