Serving to Employer Purchasers Put Well being Care Reimbursements to Work

In accordance with the KFF 2023 Employer Well being Advantages Survey, 83% of companies with 10 to 199 staff provide well being advantages to a few of their employees, whereas solely 42% of firms with three to 9 employees achieve this.

The state of affairs is even worse for nannies, residence well being aides and different home employees: In 2018, solely 19% had employer-provided medical insurance advantages, based on the Financial Coverage Institute.

This important hole in protection has employers (and staff) looking for new choices.

One answer that’s gaining traction immediately is the person protection healthcare reimbursement association, or ICHRA.

This mannequin permits employers to make tax-advantaged contributions to staff who enroll in a well being plan by way of the person market.

Since first turning into accessible to employers in January 2020, ICHRAs have seen a surge in adoption amongst employers.

Employer ICHRA Notion Information

As ThinkAdvisor beforehand lined, ICHRAs have been gaining steam, significantly in states like New Jersey, the place particular person plan premiums match or are decrease than small group plans.

Presently, ICHRA is extra aggressive on price with small group plans in simply over half of all U.S. states.

To higher perceive employers’ consciousness, curiosity and issues associated to ICHRA, Gravie lately partnered with Wakefield Analysis to conduct a nationwide employer survey of 500 well being advantages decision-makers who don’t at present provide ICHRA.

Whereas the examine confirmed favorable curiosity in ICHRA amongst employers, it additionally recognized some limitations holding many again from providing this answer immediately.

Survey Particulars

Beneath are key findings that monetary professionals can contemplate when serving to purchasers navigate their well being advantages bills.

1. The ICHRA is projected to develop as a well being advantages answer.

As many as 89% of advantages decision-makers are contemplating well being advantages by way of an ICHRA for his or her staff within the subsequent three years.

Moreover, 87% agree that an ICHRA could also be a strategic, long-term match for giving their staff the pliability to decide on a person well being plan that works greatest for them.

With the anticipated enhance in ICHRA enrollment by way of state market choices, monetary professionals may help purchasers construct a complete advantages technique that aligns with their monetary plans.

At Gravie, we see purchasers of all sizes providing our ICHRA answer alongside our small group well being plan.

For some purchasers, an ICHRA may be a short-term ramp to a bunch plan, whereas for others, this mannequin provides a sustainable technique for the longer term — and never only for small and midsize teams.