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.