With the costs and maintenance 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 with the flexibility for employees to pick only the benefits they need. This type of health reimbursement arrangement (HRA) offers a better and simpler way for employers to provide employee benefits.
ICHRA Can Benefit All Businesses
The IRS has simplified the ICHRA rules and regulations by expanding eligible business types and reducing participation benchmarks. ICHRA’s flexibility allows for customizable benefit solutions 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. ICHRA classes eliminate the need for benefit overhauls as a company expands. ICHRA grows with businesses and easily scales to suit workforces of all sizes.
Spans Multiple Business Structures
ICHRA rules and regulations allow companies to simplify their insurance solution by offering an ICHRA and allowing employees to sign up for individual plans. No longer do employers have to deal with the ever-changing traditional group plan offerings when an ICHRA offers a simple solution that stays consistent across multiple business structures.
ICHRA benefits 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 All Employees
Businesses can offer an ICHRA to employees regardless of location and employment class. 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 ICHRA employee classes, including part-time, seasonal, and temporary workers.
The combination of rising insurance costs alongside a competitive employee recruitment process makes ICHRA the perfect choice for small businesses and mid-sized companies looking to attract and retain a talented workforce on a budget.
How to Know Your Company Is Ready to Switch to an ICHRA
Traditional Group Plans Are No Longer Meeting Your Needs
Price hikes during the annual renewal season are becoming more common as the cost of traditional group health insurance continues to skyrocket. An ICHRA plan allows companies to still offer comprehensive benefits without overspending on a group plan or cutting corners in coverage.
With an ICHRA solution, 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.
Employees Are Looking for Flexible Benefits
Expensive one-size-fits-all benefits often do not fit the needs of all employees. The benefit of ICHRA plans is the flexibility in employee reimbursement benefits and the option for employees to select their own health insurance plan within their budget.
When your company is ready to ditch costly and confusing traditional group health insurance, W3LL can help you easily set up an ICHRA.
Still have questions on the ICHRA limits, rules, and regulations? W3LL has the answers you need and is a great partner to help you develop a plan that fits your company structure, budget, and employees’ needs.