Take Health Command has had a front-row seat on federal agency efforts to draft and complete the new individual coverage health reimbursement arrangement (ICHRA) regulations.
The Dallas-based startup already provides compliance services, employee enrollment services and other support services for the new ICHRA’s older sibling: the qualified small employer HRA (QSEHRA). The firm’s basic package of QSEHRA services costs $15 per employee per month.
Now the company is looking at the new ICHRA administration opportunity.
If the regulations posted Thursday take effect as written and work as drafters at the Internal Revenue Service, the Employee Benefits Security Administration and the U.S. Department of Health and Human Services, employers will be able to use ICHRAs provide cash that employees can use to buy their own major medical coverage starting in January 2020.
Employers may be able to start moving employees into ICHRA programs for 2020 coverage this fall.
Under federal regulations, QSEHRAs were available only to small employers. The new ICHRAs will be available to employers of all sizes.
Jack Hooper, Take Command Health’s chief executive officer, said in a statement that he likes the look of the new regulations for ICHRAs, and for a related type of health account, excepted benefit HRAs. “We are excited to see their impact play out in the market,” Hooper said.
Here are three details Hooper noticed when he read the final regulations, according to a blog entry he posted today.
1. There are no ICHRA employer contribution limits.
The QSEHRA contribution limits are about $5,000 for single coverage and about $10,000 for a family.