The NEW ICHRA has created a lot of buzz lately, and BASE® has begun working with employers to see if this new HRA, set to go into effect on January 1, 2020, is right for their business. The ICHRA is for businesses of all sizes that are looking for different options outside of standard group health insurance. But with all of this new information coming out, where does a business start? Start with BASE®!
The BASE® Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers the opportunity to increase flexibility and employee choice by designing a reimbursement plan for their employees individually purchased health insurance. The ICHRA will integrate with individual health insurance to provide business owners with a great alternative when it comes to providing health benefits. It is a viable means for an employer to provide some level of employer-provided health benefit.
This HRA may be new and sound intimidating, but signing up with the BASE® ICHRA is easy.
- Eligibility. Who’s eligible? Decide which employees will be eligible and what kind of benefit they will receive. Divide employees into classes including full time, part time, seasonal, employees working abroad, employees in a waiting period, employees working under a collective bargaining agreement, employees working outside the geographical area of the business, salaried employees, hourly employees, temporary employees, or a combination.
- Employee Allowances. How much do employees get? Determine how much employees will receive for reimbursement of their premium costs and medical expenses. There are no minimum contribution requirements or maximum contribution caps.
- Start Date. When does the plan start? Most companies opt to do Open Enrollment on the calendar year, but with the ICHRA, there are special enrollment periods so that employees can find their individual market insurance outside of the Open Enrollment dates.
- Communications. What do the employees need to know? The new ICHRA is new to the business and to the employees too. BASE® will make sure all employees know the particulars of the ICHRA.
This type of plan provides a health benefit to better fit the needs of many businesses, and helps to streamline benefit options and cut costs without reducing value when it comes to health benefits for employees. For the employer, the ICHRA is available to employers of any size, they are able to attract and retain employees with an increased benefits package, deduct 100% of reimbursements as a business expense, save money on not having to provide a traditional health care plan to any or all of their employees, and have peace of mind knowing BASE® is handling their plan administration. For the employees, the ICHRA will help them have additional money to combat the continuous rise in health care, have non-taxable reimbursements, pick the individual health insurance that is just right for them, and have an easier way to get reimbursed for their health care expenses.
BASE® will work step-by-step with the business to set up the ICHRA and help the business successfully make the most out of the new ICHRA. Who’s ready to be a part of this new and exciting change in HRAs? Call BASE® at 888-386-9680 to get started TODAY!