Giardini
Consulting
Group
Individual Coverage Health Reimbursement Arrangement (ICHRA) pronounced "ick-rah".
A more efficient way to offer health care coverage. Prior to recent government guidance, employers could not meet their Affordable Care Act (ACA) obligations and avoid penalties without sponsoring a traditional group health plan. All this changed in 2020 with the new Individual Coverage Health Reimbursement Arrangement (ICHRA) option.
An ICHRA offers employers an effective alternative to the traditional way of providing health insurance to employees. Instead of offering a one-size-fits-all group health plan, employers can now provide tax-free funding for employees to purchase a qualified health plan from any insurance carrier they choose.
This reduces administrative burdens for employers while providing employees an opportunity to select from a wider range of health insurance options for themselves and their families. In addition, an ICHRA completely eliminates claims risk and the unpredictability this risk has on your renewal costs each year.
ICHRA
Benefits For The Modern Employee
RULES & DESIGN
Reimbursement Rules For Employers
Employers can choose that their ICHRA reimburse for:
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Insurance Premiums Only
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Insurance Premiums + Qualified Medical Expenses; or
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Qualified Medical Expenses only (as defined by the IRS in publication 502)
ICHRA’s give employers a great deal of flexibility in designing ICHRA benefit classes, allowing it to be a tailor-made plan for their organization.
Employer Contributions
Employers can structure their reimbursements according to the following criteria:
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Give all employees the same amount.
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Vary reimbursements by family size
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Vary reimbursements by employee age
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Vary reimbursements by both family size and age
When considering the amount of ICHRA flexibility you should ensure that the plan design is equitable to groups of employees. The majority of the regulations regarding ICHRA are meant to prevent discrimination.
Employers can base eligibility classes on 11 different categories:
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Salaried employees
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Hourly employees
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Seasonal employees
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Full-time employees
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Part-time employees
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Employees in different locations, based on rating areas
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Employees covered by a collective bargaining agreement
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Employees who have not satisfied a waiting period for coverage
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Temporary employees of staffing firms
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Non-Resident aliens with no US-based income
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A combination of the above
ICHRA Qualified Plans
The following plans are allowed under ICHRA.
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Individual Health Plans (on or off-exchange)
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Medicare Part A, B, and Part C
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Student Health Insurance
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Dental Plans
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Vision Plans
At least once a year employees must be given the option to “opt-out” of participating in the ICHRA. A primary reason for doing this is if they receive premium tax credits on an ACA exchange.
We meet with each employee to help choose plans that meet their health & financial needs.
WE MAKE IT EASY!
We make the whole process easy for you and your employees. We eliminating any administrative burden for your organization allowing you to focus on what matters most, your business.
Step 1
Design Your Plan
Together we create a budget, decide who is eligible, and what expenses will be covered under your ICHRA.
Step 4
Group Meetings
We conduct group meetings to teach employees how to choose the right plan. This includes education on terminology, networks, & how to look up prescribed medications.
Step 2
Quotes Generated
We create individualized quotes for each employee, perform ACA affordability testing, and non-discrimination testing to ensure plan compliance.
Step 5
Enrollment
We conduct one-on-one meetings with each employee to review their benefits, answer questions, and enroll them in their selected health plan.
Step 3
Personalized Kits
A personalized kit including a side-by-side comparison of available plans, a company benefits booklet, and enrollment form is sent to each employee.
Step 6
Plan Payments
We make all of the plan payments to each carrier monthly and subsequently invoice your organization.
CUSTOM COMMUNICATIONS
