Author: decisely1
In the evolving world of employee benefits, businesses have experienced rapidly increasing prices and ever higher deductibles, Individual Coverage Health Reimbursement Arrangements (ICHRA) have emerged as a flexible, customizable way for employers to provide health coverage. But what exactly is an ICHRA, and how does it differ from traditional health insurance options? In this article, we’ll break down what you need to know about ICHRA, from the basics to benefits for both employers and employees.
Understanding the Basics:
ICHRA is a different type of employee health plan. ICHRA is an account established by employers to reimburse employees tax-free for their individual health insurance premiums and other qualified medical expenses. Instead of offering a traditional group health insurance plan, employers set a monthly allowance for employees to buy individual insurance coverage directly from an insurance provider or the Affordable Care Act (ACA) marketplace.
Here’s how it works:
Employers Set a Budget:
Employers decide how much to contribute to employees’ healthcare purchase. This amount can vary by class of employee (e.g., full-time vs. seasonal, by level or by geographic location).
Employees Choose Their Plans:
Employers decide how much to contribute to employees’ healthcare purchase. This amount can vary by class of employee (e.g., full-time vs. seasonal, by level or by geographic location).
Claims Submitted and Reimbursements Made:
Employees submit claims for their premiums and qualified medical expenses, which are reimbursed to them up to the set allowance.
How ICHRA Differs from Traditional Health Insurance:
Unlike traditional group insurance, ICHRA allows more both employers and employees choice and personalization. Employees select a plan that meets their individual or family needs, while employers avoid the high costs and complexities of managing a group plan. ICHRA has no minimum participation requirements, allowing businesses of any size to offer health benefits, even if only a few employees choose to participate. And, because each employee is participating in their own plan, employers avoid the financial strain of annual premium increases they might otherwise experience with a traditional group health insurance renewal.
In the dynamic landscape of small businesses, the quest for affordable health plans remains an enduring challenge. At Decisely, we recognize the vital link between offering health insurance to employees and fostering unwavering loyalty among your workforce. Our latest white paper, ‘Businesses Fight to Keep Health Plan Rates Down, Benefits Up – Paying Off in Employee Loyalty,’ delves deep into the compelling issues confronting small businesses in their pursuit of securing robust employee insurance benefits.
Download our PDF to learn more:
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Gravie announced today a partnership with Decisely – an HR platform offering a suite of services for small and medium-sized businesses to manage critical HR functions from recruitment to retirement, and everything in between. Gravie’s flagship solution, Comfort, will be a preferred health plan for delivery service providers and freight partners across the country that serve a U.S. Big Five e-commerce company. Through Decisely, more than 120,000 employees will have access to Comfort.
Comfort is the nation’s first-of-its-kind health plan that provides zero-deductible, zero-copay, and 100% coverage on most common healthcare services, at a monthly cost comparable to most traditional group health plans. In many cases, employers leverage the group buying power of Gravie to save on average 19% on monthly premiums when making the switch. In addition, Gravie’s unique cost-sharing model is helping Comfort members save on average $100 per month on out-of-pocket expenses, thanks to a comprehensive list of no-cost services that members will never see a bill for. What’s more, employers offering Gravie Comfort boast improved outcomes for their employees who are getting the care they need early and consistently.
“For small and growing businesses, health benefits can cause a level of strain on entrepreneurs who don’t have a dedicated HR team. Decisely is meeting a critical need for these business owners,” said Abir Sen, executive chairman of Gravie. “We’re excited to partner with Decisely to bring these employers and their employees comprehensive health benefits.”
Decisely works with more than 600 delivery service providers and freight employers across the country to provide affordable and competitive health benefits with a modern approach to HR tools that can be managed through one integrated and intuitive platform.
“Gravie’s employee- and family-friendly, zero-cost approach for most common services matches perfectly with the employee needs gained from our client research. We’re pleased to be able to bring the Gravie solution to our program and small business clients,” said Kevin Dunn, CEO of Decisely.
About Gravie
Gravie has been at the forefront of driving change and improving the healthcare industry by creating innovative employer-sponsored health benefit solutions that put consumers first. Gravie has served more than 1,500 employers and 100,000 individuals across the U.S.
About Decisely
Decisely is an integrated technology solution to manage all your HR needs from recruitment to retirement, and everything in between. With over 150 years of combined experience, the leadership team has grown Decisely from a simple brokerage firm to a diverse team of licensed industry experts and technical support. The Decisely family is focused on providing the best benefits, HR, and compliance management service on the market. Learn more at www.decisely.com.
Decisely CEO Kevin Dunn spoke with Jeff Bond on the Chat with Leaders Podcast about Decisely being part of B Local GA and the B Corporation community. He discusses how it has influenced his leadership and what advice he has for other leaders who are interested in using their influence and business as a force for good. Thanks to Jeff for including Decisely in the discussion.