With the need for cash and talent, many employers have engaged in crafty measures to keep people and pay them more. ICHRA (Individual Coverage HRA) has been a rising topic for many clients looking to provide their employees with the best options while reducing risk within their organization. Since January 1, 2020, when ICHRAs first became available to all employers there has been more exploration of this option. The switch can benefit both employees and employers. Employees can choose from a variety of health plan options, continue to use their medical plan post-employment, and contribute towards the premium tax-free. Employers can reduce costs long-term, shift risk and eliminate open enrollment overhead.
ICHRA fits a wide variety of organizations – full-time, part-time, high turnover, and hourly paid employees. This allows the employee to pick their best health plan option while providing them the resources and financial support they need.