What’s ICHRA?
In simplest terms, the Individual Coverage Health Reimbursement Arrangement allows businesses of all sizes to offer employees a monthly allowance of tax-free money, allowing them to buy health care services that fit their unique needs while controlling costs and addressing ACA compliance.
Challenges Facing Employers Today:
-
Health insurance costs are skyrocketing and out-of-control
-
Recruiting and retention challenges are rising
-
“One-size-fits-all” group insurance plans aren’t meeting employee needs
-
ACA non-compliance is leaving employers exposed to significant fines
-
ACA mandates for large employers are eroding employee compensation
Benefits of Individual Coverage HRAs for Employers
Flexibility
Employers can offer levels of
benefit per employee class
Attraction/Retention
Employees can
choose a health plan
tailored to their specific needs
Controlled Costs & Risk
Employers can take
control of the insurance
spending, contributions, and risk
ACA Compliance
Meets both mandates
of Minimum Value
and Affordability
Tax Efficiency
Helps employees pay for
individual health insurance
premiums tax-free, not
impacting their taxable income
Administration
With a benefits administrator,
ICHRA eliminates businesses
working between insurance
companies and employees
Individual Coverage HRAs, Driven by Technology…
As an administrator of Individual Coverage HRA plans for our clients, Flyte HCM’s offering includes access to employer dashboards and reporting to streamline the process. Quickly access employee data, manage new enrollments, create real-time reports, and easily monitor your plan’s activity. We put it all at your fingertips!
