ICHRA
Individual Coverage HRA
ICHRA – The Most Significant Change to Health Care Benefits in Decades
What is the Individual Coverage Health Reimbursement Arrangement?
In simplest terms, ICHRA is a federal ruling which allows businesses the option to offer employees a monthly allowance of tax-free money to buy health insurance that fits their unique needs. Along with provisions for out of pocket health insurance expenses, ICHRA directly addresses ACA compliance for employers with more than 50 employees.
Challenges Facing Employers Today
Enrolled by 2029
The Centers for Medicare & Medicaid Service estimates that by year 2029 11 million American employees will be enrolled through an Individual Coverage Health Reimbursement Arrangement.
Offering ICHRA by 2029
The Centers for Medicare & Medicaid Service estimates that by year 2029 800,000 employers will be offering an Individual Coverage HRA to their employees.
Satisfies Employer Mandate
The Individual Coverage Health Reimbursement Arrangement, when structured correctly, meets the standards of: Minimum Essential Coverage, Minimum Value and Affordability. Meeting these standards means that an Applicable Large Employer has satisfied all of the large employer mandates imposed by the ACA.
Across State Lines
The Individual Coverage HRA is available in all 50 states! We can administer your plan no matter what state you’re in, or how many states you do business in.
ICHRA is the Bridge from where benefits were, to where they are going.
Benefits of ICHRA
Everyone Wins!
Once an employee’s insurance premium or out-of-pocket expenses are approved, the business reimburses them up to their allowance amount. It’s that simple, and can satisfy all ACA mandates for large businesses.
Different Than An HRA
ICHRA is different than a traditional HRA for two reasons. First, an ICHRA can reimburse individual insurance premiums, whereas an HRA cannot. Second, an ICHRA works with individual insurance plans, while an HRA can only be used with a group health plan.
Setup
Flyte begins the plan setup process:
- On-boarding call with your Account Manager
- Setup confirmation and Plan materials
- Enrollment materials sent and we’re ready to begin
- ICHRA notice provided to employees 90 days before start date
Enrollment
Employees enroll in Individual Coverage
- Check out our Private Exchange enrollment partner, Healthchoice.app
- Final Plan documents and Health Account manager provided
- Complete enrollments sent to Flyte
- Employees submit first claim for reimbursement
Ongoing
Initial and Ongoing Processing:
- Processing date: Employer receives Claims Funding notice
- Next business day: Funding for claims is pulled via ACH
- Three business days: Direct Deposit funds are pushed to employees
- Download our ICHRA Administration Infographic below
Renewal
Individual Health Coverage Renewal on 1/1:
- 120 days before plan renews: Plan design questions are answered and a new
ICHRA Notice created - 90 days before the plans renews: ICHRA Notice must be sent to all eligible
employees
Service
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