The Most Significant Change to Your Health Care Benefits in Decades is Here
CHALLENGES FACING EMPLOYERS TODAY…
Health insurance costs are skyrocketing.
Premiums have increased as much as 80% since 2014.
Group insurance isn’t meeting employee needs
48% of employees stated they’re unhappy with limited benefits options.
The job market is VERY competitive.
New and existing employees are demanding a competitive benefits package that is tailored to their needs.
ICHRA Administration solves all of these problems
The federal government provided a ruling called ICHRA which will bring stability, variety and savings to employers and employees.
ICHRA – Transforming Employee Benefits
For years, HRAs had been a popular solution for businesses who wanted to reimburse their employees’ individual health insurance. The Affordable Care Act (ACA) changed that, significantly limiting a business’ ability to offer HRAs for individual policies.
In 2017, President Trump issued an Executive Order directing the Departments of Treasury, Health and Human Services, and Labor to expand business’s use of HRAs once again. In June of 2019, new rules were released, establishing ICHRA as an option for 2020.
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 is traditionally integrated with a group health plan.
Benefits of an ICHRA Plan
Employers can offer different levels of benefit per employee class.
ICHRA allows employees to choose health plans that are tailored to their specific needs, not one-size-fits-all plans.
ICHRA allows employers to take control of insurance spending, contributions, and risk.
ICHRA plans meet both mandates of Minimum Value and Affordability, protecting employers from hefty IRS penalties.
ICHRA helps employees pay for their individual health insurance premiums tax-free, not impacting their taxable income.
With a benefits administrator, ICHRA eliminates businesses working between insurance companies and employees.
No underwriting and no minimum participation required! Decide what your contribution is and make an offer. With Flyte HCM’s help, it’s that easy.