It's like 401(k) for health insurance
Today, we are talking about the Individual Coverage Health Reimbursement Account (ICHRA), some pronounce it "ick-rah". Call it what you want, but the program allows employers to "get out of the benefits' game" whilst maintaining a level budget, giving employees freedom of choice in the market, and where applicable, ACA compliance. So what is the ICHRA? The ICHRA is an HRA, that allows an employer to reimburse, among a variety of medical expenses, individual health insurance premiums (as well as dental, vision and other exempted benefits). The program was made available by legislation on January 1st, 2020, and HHS estimates that nearly 800,000 employers and over 11 million employees will be finding their coverage via an ICHRA in the next 5-10 years. So why is this important? It puts the choice of insurance back in the hands of the individual. No more confinement to two benefits plans, 1 network, unaffordable plans, etc. It is freedom of choice at a stabilized price for employers. The ICHRA is a focus of ours at New Edge Solutions that we feel will disrupt the current group insurance industry and bring about much-needed competition to the individual market.