With the costs and maintaince of traditional group insurance plans skyrocketing, businesses are turning to more creative solutions to meet their insurance needs. An Individual Coverage Health Reimbursement Arrangement (ICHRA.) blends cost-saving methods and the flexibility for employees to pick only the benefits they need while leaving out all the rest.
The IRS has simplified the rules and qualifications by expanding eligible business types and reducing participation benchmarks. Find out if your business qualifies for an ICHRA today and start saving.
ICHRA Can Benefit All Business Regardless of Structure and Size
ICHRA’s flexibility allows for a customizable benefits solution for businesses regardless of structure, region, industry, or size.
Accommodates Companies of All Sizes
Any business entity with at least one documented employee within the organization qualifies to participate in offering an ICHRA plan. More restrictive HRA types require more than 50 employees, severely limiting qualifying companies. The flexibility that the basic ICHRA plan has regarding employee size eliminates the need for benefits overhauls as the company expands. With no cap on the maximum number of employees covered, ICHRA was developed to grow with businesses and offer comprehensive benefits regardless of company size.
Spans Multiple Business Structures
ICHRA is an option for businesses regardless of location due to employees’ ability to select their own health insurance plans. Companies spanning across multiple states can simplify their insurance solution by offering an ICHRA and allowing employees to sign up for individual plans.
Additionally, an ICHRA can be offered by any type of business structure, including government entities, non-profit organizations, and private sector companies. Organizations restricted to tight budgets and multiple regulations benefit from ICHRA’s cost control options due to traditional group plans’ tendency to increase in cost over time.
Options for Non-Traditional Employees
In addition to providing insurance options for full-time employees, ICHRA provides a way for companies to attract and retain part-time, seasonal, and temporary workers. Companies have the option to maintain traditional group insurance for full-time staff while offering an ICHRA to any number of the 11 different types of employment classes. This hybrid system provides additional flexibility to insurance offerings and limits expenses while providing benefits to all employees regardless of status.
The combination of rising insurance costs alongside a competitive employee recruitment process makes ICHRA the perfect choice for small- and mid-sized companies looking to attract and retain a talented workforce on a budget.
How to Know When Your Company Is Ready to Make the Switch to an ICHRA
Traditional Group Plans Are No Longer Meeting the Needs of Your Company
Price hikes during the annual renewal season are becoming more common as the cost of traditional group health insurance continues to skyrocket. Overspending on a group plan puts a drain on companies’ budgets that few can afford. ICHRA allows companies to still offer comprehensive benefits without placing themselves at the mercy of large insurance companies. Employers have the flexibility to set the reimbursement amount to a number they are comfortable with and vary the maximum amount across different employee classes for added savings.
If you are overspending on a group plan or want to avoid cutting corners in coverage, it may be time for an ICHRA solution.
Employees Are Looking for Flexible Benefits
Expensive one-size-fits-all benefits often do not fit all the needs of employees. Allow them the freedom to select their own plans and only pay for what they want with an ICHRA.
When your company is ready to take the next step with setting up an ICHRA, you might still have some questions about getting started or exploring how to customize your process. W3LL can help you develop a plan that fits your company structure, budget, and employees. For personalization and flexibility in employee reimbursement benefits, ICHRA is a great option. And to help you launch yours, W3LL is a great partner.