Advisors May Pry HRA Business Away From Brokers: Aite

“The COVID-19 pandemic interrupted any potential growth spurt they may have otherwise encountered,” the Aite analysts write.

But ICHRAs could turn out to be more affordable than ordinary group health coverage, the analysts write.

Benefits brokers are not necessarily in a great position to offer HRAs, because they may not have the systems needed to take in HRA claim files, the analysts write.

The analysts suggest that financial advisors with an interest in HRAs could be in a good position to capture HRA market share.

Other entities in a good position to participate in the HRA market include health savings account providers and third party administrators, the analysts write.

Elsewhere in the report, the analysts suggest that:

• COBRA health benefits coverage will cover fewer than 10% of the workers displaced by turmoil related to the COVID-19 pandemic, because COBRA coverage is usually so expensive.
• Only about 20% of unemployed are entirely uninsured.
• A big increase in the number of unemployed workers could lead to a big increase the number of departing workers with “unaffiliated” health savings accounts.

— Read Some State Health Markets Tilt More Toward ICHRAs: Vericred, on ThinkAdvisor.

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