The individual coverage health reimbursement arrangement (ICHRA) gives employers the ability to design and customize a plan that’s tailor-made for their organization. A key principle to keep in mind when considering design options is that while there’s a great amount of flexibility, plans have to be offered fairly to groups (ie, “classes”) of employees. The right ICHRA administration platform will save you time, energy, and headaches.
The many rules surrounding ICHRA and other HRAs can change year over year. Most of these rules are in place to prevent discrimination. If keeping up with changing regulations sounds overwhelming, take heart! A good ICHRA administration tool should have built-in, automatic updates to ensure compliance.
Let's check out what to look for when it comes to ICHRA administration.
Step-by-step help in designing your ICHRA
Our platform makes reimbursing your employees simple and easy. It will save you time and money, and provide you peace of mind.
The platform navigates users through:
- employee class options - ICHRA offers 11 different classes for employees, allowing freedom, flexibility and greater budget control
- reimbursement rates - ICHRA allows employers to vary reimbursements based on family size, hours worked, and location
- what to reimburse - health insurance premiums and/or qualified medical expenses (the list is long!!)
- waiting periods
- start dates
- and provides legal plan documents, employee onboarding, receipt tracking, compliance monitoring, and tax reporting.
If you're a large employer (ALE), you can also upload a census and we will run a free affordability analysis for you to ensure that you remain compliant. Affordability thresholds are changing for 2021, by the way.
ICHRA software should include the following features:
- Legal plan and summary plan description (SPD).
- A means of collecting and storing employees’ electronic signatures.
- Privacy features that ensure the company does not view employees’ protected health information (PHI).
- ERISA compliance.
- Documentation regarding appeal requirements, notifications, and procedures.
- Continued coverage of dependent children up to age 26.
- Automated notice requirements for employees’ eligibility and annual allowance.
If a traditional group plan is being replaced by an ICHRA, it's important to make the transition as smooth and easy as possible for your employees. Give them the resources they need for them to choose their own plan stress-free. Our data-driven platform can help your employees search for plans based on their needs, their doctors and their prescriptions.
ICHRA administration should include the following employee features:
- Robust on-boarding and online support.
- An employee welcome letter and other employee communications.
- Resources to help employees decide which policy to purchase.
- Online and mobile access to their account with instant receipt upload feature.
- HSA compatibility.
- A simple way for employees to make reimbursement requests.
- A way for employees to track reimbursements over time.
ICHRA should be simple for employers and benefits consultants
Whether you're the plan administrator on staff or a benefits consultant helping a client, an ICHRA administration tool should make it easy to manage the ICHRA, track reimbursements, and comply with all reporting requirements.
Key features include:
- Easy setup
- Support for understanding affordability and premium tax credits and how those affect employees.
- Cloud-based account access.
- Real-time access to accounting information.
- An easy way to manage employee enrollment in the ICHRA.
- A way to track and record reimbursements (and send automatic notice of reimbursement decisions to employees).
- Online, automatic annual renewal.
Ready to get started?
Call us biased, but we think our Take Command Health ICHRA Administration tool is the way to go! Is your company or client going to be a part of this exciting change? Chat with our team with any questions you may have about these new, tax-friendly benefits or check out our new ICHRA Guide for more information on its background, setup process, requirements, and rules.