ICHRA provides a clear path to choice and savings.
Due to the growing demand for flexible, personalized employee benefits, ICHRA stands out as s strategic benefit that can greatly enhance human capital incentives for companies across all industries. When employers choose to offer ICHRA, they also pay less in premiums by not having to buy into a group plan resulting in significant savings. Flyte builds ICHRA plan options that attract and retain quality human capital by allowing employees to decide which coverage is most relevant in their lives.
Flyte provides plan administration packages that take the guesswork out of reporting and compliance, reduce liability, and protect the bottom line for businesses across the country. Besides IRC 4980 (H) governing penalty amounts for failure to provide plans meeting minimum value and affordability requirements, other federal regulatory guidelines were also put in place to ensure ICHRA plans are administered in a consistent and compliant manner. These regulatory guidelines address employee notices, eligibility, and plan documents.
For example, after the first year that a business decides to offer ICHRA plans, they must provide a 90-day notice regarding the benefit and participant eligibility. Regulatory requirements also dictate what must be included in these annual notices. Those requirements include but are not limited to:
- The terms of the ICHRA;
- Information distinguishing the ICHRA plan option from other HRA options;
- Information on how ICHRA will impact Advance Premium Tax Credit (APTC) eligibility regardless of whether the employees opt for ICHRA;
- Information regarding participant opt-out and waiver rights;
- Information regarding Special Enrollment Periods;
- Information regarding resources for evaluating or determining the affordability of ICHRA plans;
- Notice that ICHRA can be ancillary or combined with Medicare as coinsurance; and
- Contact information for participant ICHRA questions and navigation.
ICHRA is subject to ERISA which also governs coverage plan documents. Among other requirements, employers are obligated to provide Summary Plan Documents (SPD) within 120 days of adopting an ICHRA option to offer employees and within 90 days of an employee opting for the ICHRA or else become subject to fines.
Furthermore, plan documents must also list plan administrators, fiduciaries, and their respective functions and responsibilities. Eligibility and effective dates, description of benefits provided and excluded, claim procedures, HIPPA notices, the process for terminating or amending a plan, and other federally-mandated material are also required. Flyte protects businesses from these exorbitant penalties via simplified, proactive ICHRA plan administration systems and customer support services.
ICHRA, unlike a Minimum Essential Coverage (MEC) plan, meets both part A and part B of the Applicable Large Employer (ALE) Regulations. Large employers subject to the ALE Mandate along with small and large ICHRA plans, are required to report to the IRS since ICHRA plans, regardless of size or enrollment status, are a self-funded health reimbursement arrangement.
With the help of Flyte, your business can navigate the complexities of ICHRA compliance and the Large Employer (ALE) Mandate with confidence and ease. Partner with Flyte to explore all that ICHRA has to offer your organization while greatly mitigating financial liability born from regulatory compliance requirements.