A byproduct of the pandemic saw health insurance premiums largely stable with claims down as elective surgeries and even more serious diagnoses sat on the back burner for many. Now, as attention to both has returned, a steep cost correction continues for health insurance.
That’s especially true for employer group plans with 50 or more total employees, which is the threshold at which a health care plan is underwritten by insurance carriers looking at the healthiness of all the employees to determine that company’s rate increase and premium for the next year.
“(Organizations are) trying to figure out alternative solutions because it’s so much money. Let’s say you’re a 100-life group. As an employer, you could be spending $1 million on health care premiums,” imparts Joe Gilbert, who has worked in the health insurance industry for more than three decades.
As a result, a newer option is gaining traction in the market for its relative affordability and flexibility.
The Individual Coverage Health Reimbursement Arrangement (ICHRA) has been around under new federal rules for four years. In basic terms, an employer designates a tax-free monthly account for each employee based on their age for them to obtain their own health insurance coverage. That insurance is commonly purchased through the state’s health insurance exchange or HealthCare.gov.
Read the full BizVoice magazine article.
Rebecca Patrick is senior vice president of communications for the Indiana Chamber. She is also the managing editor of the Chamber’s award-winning BizVoice magazine and has been with the organization since 2003.
