Your clients want your help when it comes to health insurance coverage. They’re looking for flexibility to find affordable coverage for themselves and their employees. In a nutshell, they want to define their own budget.
An Individual Coverage Health Reimbursement Arrangement (ICHRA), is an alternative to traditional group health plans that can provide significant savings to both an employer and their employees. It allows businesses of any size to make tax-free contributions to reimburse employees for their health insurance premiums and/or medical expenses. It may be the perfect choice for small business health insurance.
Cost Control & Flexibility – The Secret Ingredients of an ICHRA
For decades, employers have been tasked with making a very difficult decision – which health plan will best fit the needs of a diverse workforce? This adoption of a “one-size-fits-all” mindset has left many employees frustrated with the lack of control over their family’s healthcare and expenses.
Likewise, employers and their employees have been noticing higher costs year over year. In some cases, it’s been forcing many to consider dropping their benefits. The cost of offering healthcare benefits has left many organizations feeling stuck.
As employers and employees experience their own unique frustrations in a post-COVID landscape, we begin to see the perfect storm unfolding in our modern benefits ecosystem. This is exactly where an ICHRA comes into play. It’s a carefully crafted solution that enables flexibility and cost-control.
Small Employers
Your clients with less than 50 employees are considered small employers. Because of their size, they have the flexibility to offer the coverage they want…without restrictions.
This is exactly where you and Benafica can help. Your small employers may be new to offering benefits. They need a partner that can help them find solid solutions to unique scenarios. Benafica has the industry knowledge and experience to help define their budget and find a plan that fits their needs. Whether they’re a new business or new to offering benefits, you can count on Benafica to be there to help as you discuss health plan coverage options and to be there for them as they work through the intricacies of finding the right coverage.
Large Employers
If a client has more than 50 employees, they are, by definition, a large employer. There are some restrictions on large employers regarding what healthcare coverage they can offer and must pass an affordability test to determine coverage capability. Fortunately, Benafica will complete the affordability test on behalf of the employer and ensure compliance requirements are met.
Likewise, you can count on Benafica to take care of your large employers and help them set up a plan that can attract new employers and retain existing ones.
With a mission to provide the next generation of insurance tools and services to empower people in their personal and professional lives, you can count on Benafica to be there as you work with your employer clients.
Benafica is hosting a webinar on Thursday, April 11, 2024 at 10:00 AM CDT to help you navigate the complexities of ICHRAs from the nuances of these plans to streamlining the process to regulatory compliance. To register for this informative look at this modernized form of health insurance benefits, click the register button below.
To get information on discussing ICHRAs with your group clients, talk to your Sales Relationship Manager, the LeClair Group Team (groupbenefits@leclairgroup.com) or contact Benafica directly at 651.358.2990 or hra@benafica.com.