In fact, the ICHRA is the most flexible and affordable option yet in employer-sponsored health plans.
Also, it is expected that 90% of employers implementing the new ICHRA will be companies with 20 or fewer employees.
Advantages for employers:
— The ICHRA is available to employee groups of any size;
— There is no minimum or maximum limit on the amount of funding an employer may provide;
— Participants provide required proof of coverage; no further employer processing required;
— Integrates with Medicare (for eligible employees); and, Works with HSAs and health FSAs.
Advantages for employees:
— Choose your own individual health coverage based on what you need and what you can afford;
— Be reimbursed for qualifying health insurance up to the amount your employer provides in the ICHRA;
— Keep the same health insurance when you change jobs;
— When both spouses have an employer-sponsored ICHRA, premium reimbursement can be split between thetwo; and,
— An opt-out provision for employees that would rather forego the new HRA in favor of a premium tax credit on a health care exchange.
The ICHRA works much the same as other HRAs, with the following important differences:
— Reimburses premiums from open market or exchange; Available to businesses with any number of employees;
— Participating employees are no longer eligible for a premium tax credit for coverage purchased on an exchange; and,
— Employees may opt out of HRA reimbursements to retain eligibility for premium tax credit.
The Trusted Source for over 20 years, Core Documents is the country’s leading provider of cost-effective, tax-saving benefit plan documents for Health Reimbursement Arrangements and Section 125 Cafeteria Plans. The Trusted Source since 1997, thousands of satisfied agents and employer groups nationwide rely upon Core Documents for free plan design consulting services, plan document updates, ERISA Wrap SPDs, and administration services.