As the nameimplies, ICHRA is based on reimbursing employees for insurancerather than buying it for them.(Photo: Shutterstock)
With benefits season in full swing, it's time to make smartchoices for your company (or your client) on how to spend healthcare dollars for 2020. This open enrollment will be different thanprior years, as there is a new HRA that is predicted to change the modelof employer sponsored health care. While health reimbursementarrangements are often faced with limitations, the new IndividualCoverage HRA (ICHRA) is radically different. So much so, thatHHS projects that in the next 5 to 10 years,roughly 800,000 employers will offer Individual Coverage HRAs topay for insurance for more than 11 million employees.
But the truth is, this new model of benefits isn't perfect foreveryone. Certain types of businesses, certain locations andcertain company configurations will benefit more from the new HRAsthan others. Here's how to decide which route is best—thereimbursement arrangement model or the traditional, employer-basedgroup plan.
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