According to HRA industry experts, HRA’s are leading the charge as the health insurance benefits game changer! ICHRA and QSEHRAs are a winner in the biggest areas: Budget and Choice! This momentum has been brought about by slim pickings in the labor market, inflation, group rate increases doubling, and health insurance, in general, being too expensive for Business Owners large and small to sustain.
ICHRA and QSEHRA growth are both on the rise! Both HRA’s have outpaced the US Departments of Health and Human Services, Labor, and Treasury initial predictions back in 2019. They predicted that the US would see a 20-30% increase in ICHRA’s from 2020-2030. According to the HRA Council 1st Inaugural Executive Summary, “ICHRA’s have seen a 350% increase since they were introduced in 2020, amidst market growth for all HRAs.” While QSEHRA’s growth in the same time frame has grown over 70%.
This growth is reinforcing the fact that businesses are shifting from group to individual coverage at a more rapid pace. Eliminating the old paradigm of meeting group participation minimums, unrealistic rate increases, or no offers of health insurance and moving to a model that supports employees choosing their own health care..
The report also finds that HRA’s are a bridge to offering benefits for smaller business owners with up to 85% being new to benefits. The bridge is an onramp to offering not just health insurance, but a benefits package for businesses not able to offer them in the past due. HRA’s offer predictability, flexibility, and portability, and best of all are budget-friendly in nature.
ICHRA could be a simple reimbursement or wealthy benefit offering because there are no minimum or maximum reimbursement amounts put in place! Reimbursements can be for premiums only, the entire premium (through a pretax plan), and/or for eligible out-of-pocket medical expenses such as co-pays, Rx’s, and other out-of-pocket medical expenses. The sky’s the limit!
ICHRA is considered a self-funded group health plan and businesses of all sizes can offer other group benefits alongside it. For an even richer offering, businesses can layer in traditional benefits such as a flexible spending account (FSA) for dependent care, vision, dental, HSAs, commuter benefits, and lifestyle spending accounts to name a few.
With their unprecedented growth tripling in the past three years, HRA’s have become the sustainable go-to for employers to control costs and attract and retain their talent. As the HRA Council has proved in their 1st inaugural report, ICHRA’s and QSEHRA’s are a game changer in the benefits arena.
