Liferaft’s webinar, “Why Businesses Are Dropping Group Health for an ICHRA," Liferaft’s COO, Nimish Shukla, discusses the shift in healthcare strategies, focusing on the Individual Coverage Health Reimbursement Arrangements (ICHRA). Discussed first is an overview of Health Reimbursement Arrangements (HRAs) and their flexibility as tax-advantaged tools for reimbursing employee health expenses. The ICHRA, a specific type of HRA, is emphasized as it allows employers to provide employees with funds to purchase individual health coverage. The benefits of HRAs include efficient benefit spending, streamlined accounting, and expenses based on utilization.
Furthermore, the webinar explores the advantages of ICHRAs for employers and employees. For employers, ICHRAs offer cost savings, particularly in states where individual market rates are more competitive and cost-effective than group health insurance. ICHRAs also provide flexibility for remote teams and small employers, eliminating participation requirements and offering a budget tailored to individual employees. For employees, ICHRAs offer tax-advantaged benefit dollars, real dollars to spend, and the freedom to choose the care and services that best fit their needs. This flexibility in HRAs, especially the ICHRA, empowers businesses to save money, improve their employees' healthcare options, and ensure compliance.
The webinar also outlines working with Liferaft to set up an HRA, including identifying objectives, designing a budget, and administering the reimbursement strategy. A customer case study highlights the successful implementation of an ICHRA for a smaller company in Minnesota, which resulted in substantial cost savings while maintaining the quality of health plans available to employees. Overall, the webinar underscores the value and flexibility of ICHRAs, making them a compelling option for businesses looking to enhance their healthcare offerings while managing costs effectively.
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Our team knows the ins and outs of the health insurance marketplace and will guide you towards the solution that make the most sense for your business and your team. Come with questions! Our experts are happy to dig into the details to get you the clarity you need.
During the call, Liferaft will run a cost-benefit analysis on your company's current healthcare spending and show you different ways you can save—without sacrificing plan quality. After your consult, Liferaft will design a unique plan for your employee's health insurance, including suggested plans and accounts, plan policy documents, and the annual budget.