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November 05, 2020 at 10:01 AM
As we wait for election results to be finalized, it’s interesting to note that these products have the highest enrollments in many of the states where results are uncertain. (Photo: Shutterstock)
Starting this year, employers had a new option to reimburse workers who obtain their own insurance coverage for qualified expenses: individual-coverage health reimbursement arrangements (or ICHRAs).
As employers and advisors search for new ways to control health care costs, these plans provide an alternative. Take Command Health has been tracking adoption and utilization trends during the inaugural year of ICHRAs.
“With open enrollment here, many business owners and brokers are evaluating their options for group benefits, searching for flexible and budget-friendly options,” Jack Hooper, CEO of Take Command Health, said in a statement. “Our report benchmarks what similar companies are doing and makes a strong case for the tax-advantaged reimbursement model of health insurance.”
Related: How can we improve ICHRAs?
Hooper continued, “Despite the uncertainty that we’ve all faced these past few months, we’ve seen signups for individual coverage HRAs climb steadily and double since January. Carriers are returning to the individual market and individual premium prices are stabilizing—critical factors in the success of this new HRA.”
Here are five findings from their latest report:
1. The average reimbursement rate for ICHRAs this year was $749.93 for singles.
For couples, the average is $847.20 and $931.95 for families. However, it noted that there were significant outliers, with the smallest reimbursement coming in at $40, and the largest at $20,000 per employee per month.
