Sky High Growth Potential: ICHRA
Individual Coverage Health Reimbursement Arrangements (ICHRAs) are a new type of health insurance plan that gives employers more flexibility in how they provide health insurance to their employees. ICHRAs allow employers to reimburse their employees for the cost of health insurance premiums and out-of-pocket expenses. This gives employees more control over their health care choices and allows employers to save money on health insurance costs.
ICHRAs are still a relatively new product, but they are growing in popularity. According to a recent survey by Willis Towers Watson, 13% of employers are currently offering ICHRAs, and another 15% are considering offering them in the next year.
There are a number of reasons why ICHRAs are growing in popularity. First, ICHRAs offer employers more flexibility in how they provide health insurance to their employees. Employers can choose to reimburse their employees for the cost of any health insurance plan that meets their needs, including ACA-compliant plans, non-ACA compliant plans, and even self-insured plans. This gives employers more control over their health insurance costs and allows them to tailor their benefits to the needs of their employees.
Second, ICHRAs can save employers money on health insurance costs. ICHRAs allow employers to shift the risk of health care costs to their employees. This can save employers money on premiums and administrative costs.
Third, ICHRAs give employees more control over their health care choices. Employees can choose the health insurance plan that best meets their needs and budget. This can lead to better health outcomes for employees and lower costs for employers.
The growth potential for ICHRAs is sky high. As more employers become aware of the benefits of ICHRAs, we can expect to see even more employers offering ICHRAs to their employees in the coming years.
Here are some of the specific opportunities for ICHRA growth:
- Small businesses: Small businesses are often looking for ways to save money on health insurance costs. ICHRAs can be a great option for small businesses because they offer more flexibility and control than traditional health insurance plans.
- High-deductible health plans (HDHPs): HDHPs are becoming increasingly popular, and ICHRAs can be a good way to offer HDHPs to employees without having to self-insure.
- Employees who want more control over their health care choices: Employees who want more control over their health care choices can benefit from ICHRAs. ICHRAs allow employees to choose the health insurance plan that best meets their needs and budget.
Overall, the growth potential for ICHRAs is very strong. As more employers and employees become aware of the benefits of ICHRAs, we can expect to see even more ICHRAs being offered and used in the coming years.
