Large employers with more than 200 employees are the fastest growing segment to adopt Individual Coverage HRAs (ICHRA) in lieu of group coverage, according to a new report by the HRA Council.
The Council’s third data report, 2024 Growth Trends in ICHRA & QSEHRA, shows a significant increase in large employers moving to ICHRA plans since 2023. In addition, small businesses offering benefits for the first time have increased their adoption of ICHRA plans by 84%.
“In today’s market, the impact of innovative health solutions, like ICHRA, continues to change the benefits landscape,” says Eric Allen, CEO and Founder of Flyte HCM.
Both small and large employers are finding their renewal rates of traditional health insurance skyrocketing, creating an unsustainable environment. This has been identified as a leading factor in ICHRA adoption.
“These solutions are giving both employers and employees the tools they need to tackle healthcare head-on,” says Allen. “We can see the power of personalized choices with the HRA Council’s newest data report. And now it’s clear: The future of employer-sponsored healthcare lies in proactive decision-making and tailored solutions that allow for more employee choice, ensuring a healthier, more empowered workforce.”
The Power to Choose
The report also highlights the fact that employers are shifting toward offering more personalized choices to employees, giving them the power to select the healthcare plans best suited to their households. ICHRAs and Qualifying Small Employer Health Reimbursement Arrangements (QSEHRA) are ideal plans for this switch in responsibility.
“Across Flyte’s client base, we’re seeing the same trend: Employers no longer want to choose healthcare plans for their employees,” says Allen. “They like the fact that they can wash their hands of this annual burden and give their employees more choices. Plus, offering quality, ACA-compliant healthcare plans, such ICHRAs or QSEHRAs, can oftentimes lessen an employer’s healthcare budget while allowing them to attract and retain employees with this modern benefit.”
ICHRA Plans Nationwide
For the first time, this year’s HRA Council report zeroes in on the cities and states where Heath Reimbursement Accounts are adopted at a greater rate. With the rise in remote and hybrid workers, cities including the Twin Cities, Bay Area, LA Metro, NY Metro, and Atlanta Metro are seeing these plans help a diverse workforce find quality care close to home. Other areas, including the upper Northwest, Colorado, Texas, Florida, and the Great Lakes Region, ranked highly as well.
Get to Know Flyte
If the thought of switching healthcare plans for your employees sounds overwhelming, get to know Flyte. We handle all aspects of plan administration, from setup to HRA reporting requirements. We even offer a mobile app, allowing your employees to control their healthcare options from the palm of their hand. Contact us today for a no-pressure demo and see how other small and large businesses are saving with HRAs.
