ICHRA
Signed into law in 2019, the Federal Government made it possible for employers to reimburse employees with tax-free dollars to purchase health insurance in the individual market.
Flexibility & Choice
Employer-sponsored health insurance
ICHRAs represent a new way of looking at employer-sponsored health insurance. Instead of purchasing a one-size-fits-all group insurance plan for your employees, ICHRAs allow for your employees to choose a carrier and plan that works best for them and their families. It also allows that employee to keep that plan regardless of who their employer is.
Controlling Costs
“Defined contribution” model
Through its “defined contribution” model, ICHRAs allow for employers to better control their costs and avoid premium increases year after year. Some employers have seen savings in upward of 50% in health insurance premium.
While ICHRAs are not for every employer, for those looking to get out of having to manage a health plan each year, an ICHRA may be the solution you have been looking for. CGI can provide an in-depth analysis to see if an ICHRA makes sense for your organization and will review the pros & cons in detail.
What’s the Difference between a Traditional ICHRA
and CGI’s Total ICHRA Solution?
This side-by-side comparison will tell you everything you need to know! Call or contact us today to learn more about how you can bring this benefit to your employees and eliminate the complexities of an ICHRA offering to your valued employees.
Traditional ICHRAs:
Education & Enrollment – With over 40 different plans to choose from in any given state, choosing a plan and enrolling through www.healthcare.gov can be frustrating and tedious. Employees often go through this process on their own.
Administration – Employees pay for their individual coverage and submit for reimbursement each month. This can cause a financial hardship for employees and lead to coverage cancelation if premiums aren’t paid in a timely manner.
Managing Other Benefits – Employers with COBRA, FSA, DCA as well as other benefits like Dental, Life & Disability typically work with a different third party or broker to manage these benefits. Employers also pay additional fees for COBRA, FSA and DCA.
Reporting & Compliance – Because ICHRAs are considered partially self-funded plans, the IRS requires annual 1095 reporting. This information can be extremely difficult to track given the nature of individual plans, different premium amounts, etc. Ultimately, the employer is responsible for accurate reporting.
CGI’s Total ICHRA Solution:
Education & Enrollment – CGI provides an easy-to-use enrollment platform so employees can choose a plan that works best for them and enroll via the platform. CGI provides educational meetings and assists employees with enrolling in all their benefits.
Administration –CGI’s Total ICHRA Solutions provides full ICHRA Administration so employees never have to worry about paying out of their pockets and getting reimbursed. This virtually eliminates the chance of late payments, cancelations, etc.
Managing Other Benefits – CGI provides COBRA, FSA and DCA at NO COST as part of our Total ICHRA Solution. We also manage all other benefits under one roof, and under the same enrollment platform as the ICHRA.
Reporting & Compliance – CGI provides 1095 reporting to all ICHRA clients as part of its Total Solution. This ensures compliance and accurate reporting of ICHRA premiums.
