An advantage to an ICHRA includes the ability to class employees out and offer different employer contribution to different classes. Employees that are unaffordable may potentially qualify for a premium tax credit in the Federal Marketplace.
Employers are still subject to the Affordable Care Act pay or play mandate. A properly designed ICHRA satisfies the mandate for the employer and you still have all the advantages of an ICHRA except having employees secure coverage.
ICHRA for employees under 50 can class employees out and offer different employer contribution to different classes. Employees that are unaffordable may potentially qualify for a premium tax credit in the Federal Marketplace.
Individual plans are typically offered only once a year during a SEP. But by offering an ICHRA plan, you give new employee's a 60 day window to purchase a plan. This allows your ICHRA plan to mimic a group plan.
Employees historically cannot pre-tax premium contributions in the individual market. But with an ICHRA plan, employees are eligible to pay for their share of the premium with pre-tax dollars. Employees who are eligible for premium tax credits on the Marketplace can post-tax their premiums through payroll deduction.
All employees whether they purchase coverage that is affordable through our enrollment system or on the federal marketplace through our affiliate, show up on one bill to the employer like a group health plan.
Employers are still subject to the Affordable Care Act pay or play mandate. A properly designed ICHRA satisfies the mandate for the employer and you still have all the advantages of an ICHRA except having employees secure coverage through the Marketplace with a premium tax credit.
Employee affordability is based off of the lowest priced silver plan. Therefore, this number could be lower than the number you are currently using.
We still use the same safe harbors in ICHRA plans that we use in group plans, W-2 wages, Rate of Pay, or Federal Poverty System (FPL).
If your company suffers from low participation, then an ICHRA could be right for you. There is no participation percent requirements. Employers just need to make an affordable offer of coverage.
PROS OF CHOOSING ICHRA
Risk De-Management
Cost Control
Plan Choice
Plan Flexibility
Plan Portability
Premium Pricing
Employee Experience
Network Flexibility
CHALLENGES OF CHOOSING ICHRA
Provider Networks
Administration
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