Since late 2022, we have continued to see companies explore the feasibility of an Individual Coverage Health Reimbursement Arrangement (ICHRA) ultimately leading to record high adoption rates. While the reasons usually vary: unsustainably high renewal increases or a desire to offer employees more choice in their healthcare, among others, the solution has become clear: an ICHRA is a very viable and very stable alternative to the traditional group market. However, as an early adopter of ICHRA, we have learned a few things along the way that can help you in properly evaluating and implementing this solution.

1. Forget everything you know about group insurance!

While ICHRA is a very viable and sustainable alternative to group insurance, ICHRA is NOT group insurance. While ICHRA can satisfy ALE and Affordability compliance requirements, in order to fully grasp ICHRA, you need to, in essence, forget everything that you know about group insurance. While the plans are similar (with emphasis on similar), the administration is different, the enrollment process is different and the necessity of employee engagement is much higher. Fortunately, with our comprehensive implementation, enrollment and ongoing service platforms, specifically adapted for ICHRA, we can help you make a different experience feel normal.

2. Enrollment support is critical!

As mentioned above, the enrollment process is very different for employers and employees. Many of the vendors that we work with provide cutting edge technology and readily available call centers for employees and members to engage with in order to make the plan selection process a little easier. We have taken it a step further by providing an on-site enroller. The plan selection process goes beyond deductibles or copays and employees need to be more familiar with different carrier provider networks and prescription drug formularies. Initial returns have shown that providing employees and members the chance to spend 15-20 minutes with an on-site enroller makes a new process much more familiar.

3. Start NOW!

It is never too early to start evaluating what an ICHRA might do for your company and your employees. Since all ICHRA plans have to renew on January 1 (another difference between group insurance and ICHRA), waiting until your 4th quarter renewal comes out (and you get yet another big medical increase) is not ideal timing. We are currently performing feasibility analysis studies for numerous companies, and we can do one for you now too!

Contact us today and allow us to give you an idea as to whether or not ICHRA is a good option for your company and your employees.

Please note that the information contained in this posting is designed to provide general awareness in regard to the subject matter covered. It is not provided as legal, medical, or tax advice, nor is it intended to address all concerns in your workplace or for public health. No representation is made as to the sufficiency for your specific company’s needs. This post should be reviewed by your legal counsel or tax consultant before use.