ICHRA

Choosing an ICHRA administration tool for the new Individual Coverage HRA

by Amy

While the Individual Coverage HRA (ICHRA) won't be available until January 2020, it's important to get a head start if you are considering this change for your company or your client. Remember with ICHRA, more employee classes, no contribution minimum or maximums, and no company size limit means that more businesses will be able to enjoy the benefits of HRAs with a lot more flexibility than ICHRA's predecessor.

But remember, with more employee classes comes more responsibility. Same goes with larger companies with more employees to administer the benefit to. It sounds like a lot more work, right? That's where our (upcoming) ICHRA administration tools comes in.

This new tax-free benefits strategy isn't going to bog down your to do list. The right ICHRA administration tool will do the heavy lifting for you. 

We've been updating our platform based on lessons learned from helping hundreds of clients with a different but similar type of HRA, QSEHRA. Both HRAs are aimed at the same thing: offering tax-free benefits and more affordability than traditional group plans and more autonomy in individual plan choices. They just cater to slightly different crowds; QSEHRA is better for a small business that doesn't offer a group plan and ICHRA is better for a larger company that is looking for a better option than a pricey group plan for all). 

Their administration is streamlined in a similar way. While we can't reveal all of the ICHRA administration tool features just yet, here are a few things our ICHRA administration tool will do once it goes live. 

Help you stay compliant.  

There are many rules and regulations surrounding ICHRA and other HRAs, the details of which can change year over year. You shouldn't have to keep track of this; an ICHRA administration tool should have built-in, automatic updates to ensure compliance. ICHRA software should include the following features: 

  • Legal plan and summary plan description (SPD). 
  • A means of to 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. 

Easy for employees to use.

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. Change can be hard, but this doesn't have to be! Communicate early and often, and give them the resources 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. 

Employee features should also include: 

  • 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. 

Easy for employers or benefits consultants to use. 

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. 

A good ICHRA administrative tool will give the plan administrator the training and ongoing support needed to keep the ICHRA compliant and running smoothly.   

The Take Command Health ICHRA administration tool

We can't wait for our ICHRA administration tool and it's many amazing features to go live. Now that the comments session has closed, final guidance is expected in the coming months, and in the meantime, we've been working on getting the user experience just right for this product. 

Here's what to expect.

For employees: 

  • To make the transition for your employees as easy as possible, we offer a data-driven platform to help them pick the best on- or off-exchange plan based on their preferred doctors, unique needs and prescriptions. 
  • Our customized portal allows them to enroll in the ICHRA online, view their ICHRA documents, submit medical expenses (if allowed), and upload their proof of coverage for compliance checks. 

For plan administrators or benefits consultants: 

  • We handle all the legal work and make tax season easy and painless 
  • We offer employee on-boarding and continued support for fielding questions 
  • An easy and quick online signup process 
  • A customized admin portal allows the plan administrator or benefits consultant to review and approve ICHRA documents, view monthly reimbursement reports, add/remove employees, manage subscriptions, update payment information, and see overview information about ICHRAs.

Next steps

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. 

We will keep this page updated as more information comes in. Stay tuned!

Picture of Amy

Hi, I'm Amy! I wrote this blog because I care about ideas (big and little) that can help fix our healthcare system. I used to work on projects for Kaiser Permanente and the Parkland Health & Hospital System so I've seen the system inside and out. It's so important that consumers keep up with industry shifts and changing health insurance regulations. I'm also Take Command Health's Content Editor and a busy mom. Learn more about me and connect with me on our about us page. Thanks!