It’s the season of health plan renewals. We’ve never met an HR team or CFO who actually looks forward to this time of year, so let’s look at ICHRA as an option for replacing group health insurance or a self-funded plan.
Drumroll, please…
1. Forget health plan renewal hikes
No matter what Big Insurance tells you, you don’t have to accept astronomical renewal rates every year. It can feel like those hikes are a necessary evil, but that’s not true. With ICHRA, you set a budget and that’s what you pay. Period.
2. Get that good tax feeling
You aren’t taxed for ICHRA and neither are employees. If that’s not a win-win, we don’t know what is.
3. Give your employees choice
When you have group insurance (through a fully funded or self-funded plan), you have to choose one plan for the entire company. With ICHRA, each employee chooses their own plan, giving them the freedom to do what’s best for them and their family.
Bonus: Since ICHRAs aren’t tied to employment, your employees can keep their ACA plan even if they move on from the company.
4. Predict your budget (what a novel idea!)
Imagine a world where your CFO can forecast health benefit costs. Given that healthcare is your second-biggest line item, that’s no small perk.
5. Go from 100% risk to zero risk if you’re self-funded
Self-funded plans have the reputation of being good for a company because you get control. But with a self-funded plan, you assume 100% of the risk for your employees’ health. ICHRA gives you complete budget control, and you shift health risk to the marketplace, not your company or your employees.
6. Design the perfect plan
A hallmark characteristic of ICHRA is that it allows you to designate different allowance amounts for specific employee classes. You can design the plan that’s exactly right for your company by setting unique amounts for employees who are part-time, full-time, international, or temporary, just to name a few.
7. Save 30%+ on health benefits
We don’t know about you, but this ICHRA thing just keeps looking better and better. There are lots of factors that affect benefits savings, but the net net is you save a lot. And because the savings are compounded, you’ll save more each year.
Ready to love your benefits? Get a Take Command ICHRA
Take Command has the experience to make sure you get the most of ICHRA. After all, we are the first-to-market leader and #1 HRA administration platform in the country. We’re known for our expertise, technology, and service, and we’re here to help your company love your benefits. Ask your broker about Take Command today!
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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!
