The introduction of the Individual Coverage Health Reimbursement Arrangement (ICHRA) has revolutionized the landscape of employer-sponsored health benefits. Designed to offer flexibility to both employers and employees, ICHRA opens the door to a myriad of possibilities for different types of groups. Let's look at some key categories that are particularly well-suited for ICHRA implementation.
Experience-Rated Groups with High Renewals
Experience-rated groups that consistently receive high renewals are prime candidates for ICHRA adoption. In the individual market, premiums are community-rated and primarily determined by age and zip code. Trends can be lower and more consistent year after year allowing groups the opportunity to offer better coverage for lower premiums. By transitioning to ICHRA, these groups can continue to offer competitive benefits packages while embracing the flexibility and cost control that ICHRA affords.
Bavvy will look at your population and conduct an ICHRA Feasibility Analysis to see if an ICHRA is a good fit. By comparing it to the current benefit package, we can determine if you will have better purchasing power in the individual market. The analysis also considers things such as provider availability and network disruption.
Participation-Challenged Groups
Many employers struggle with low employee participation in their health plans. ICHRA presents a compelling solution for these employers. Under the ICHRA, there is no minimum participation threshold to hit. Furthermore, this customization may attract a higher number of participants who appreciate the ability to choose plans that align with their health requirements and preferences.
ICHRA Carve-Outs
The rise of remote work has reshaped the traditional work environment, including health benefit considerations. For groups that have historically offered Health Maintenance Organization (HMO) plans or local networks of providers, accommodating remote workers can be a challenge due to limited network access. ICHRA offers a way forward for these groups by allowing employees to select plans that offer coverage in their own backyard. These groups could maintain their group HMO plan and class their remote workers into an ICHRA.
The implementation of ICHRA brings unprecedented flexibility and customization to the realm of employer-sponsored health benefits. By embracing this innovative approach, employers can create attractive benefit packages, increase employee engagement, and adapt to the evolving landscape of work and healthcare.