It’s no secret that providing traditional group health benefits to employees can be complicated and costly. Health Reimbursement Arrangements (HRAs) have helped to address the situation and control costs; however, when the Affordable Care Act (ACA) became law in 2010, the ability for businesses to offer HRAs to employees for individual policies became limited. The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) came later in 2016 but still has its roadblocks by only allowing businesses with less than 50 employees to qualify and limiting how much employers can reimburse employees each year.

In the summer of 2019, an Executive Order was released to offer more flexibility and budget control for businesses and organizations of all sizes through the Individual Coverage Health Reimbursement Arrangement (ICHRA), an HRA option first offered on January 1, 2020.

ICHRA Benefits for Employees

  • Cost savings: Reimbursements from employers help make individual health plans more affordable for employees.
  • Tax Benefits: Health insurance premiums under an ICHRA are tax-free.
  • Flexible Plan Options: Employees have the freedom to select an individual health insurance policy that best suits their needs.
  • Transferrable Plans: Because the individual purchases his/her own plan, they can take the health plan with them if they change careers.
  • Quick & Easy Reimbursements: The process to submit a claim and receive reimbursement for eligible medical expenses is quick and easy.

Offering the right group benefits is essential to attracting and retaining top talent. But our team at Morin Associates LLC also knows you want to offer group health benefits in a cost-effective and efficient way. Give our local Groton agents a call to discuss whether an ICHRA is right for your company or organization.

(860) 448-2277

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