The webinar, Comparing ICHRA vs. Level-Funded Health Plans, provides an in-depth analysis of Health Reimbursement Arrangements (HRA), Individual Coverage HRAs (ICHRA), and level-funded plans, focusing on their financial and operational benefits. ICHRAs allow employers to set a fixed contribution for employees toward individual health plans, granting flexibility and budget control. This model ensures ACA compliance, offers choices for employees regarding health plans and providers, and supports cost predictability for employers. Flexibility is one of the primary strengths of ICHRAs, with employees able to tailor coverage to their needs and employers gaining consistent, controllable expenses.

Level-funded plans serve as a hybrid between fully insured and self-funded plans. Employers pay a fixed monthly premium to manage high claims, often paired with stop-loss coverage. This plan type aims to provide a stable cost structure, and employers might receive refunds if claims are low. However, level-funded plans require more oversight, and if claims are high, stop-loss premiums can rise, increasing employer costs. Unlike ICHRAs, level-funded plans keep a portion of financial risk on the employer's balance sheet, which may be less predictable over time, especially for smaller employers.

ICHRA, level-funded, and self-funded models offer unique advantages based on employer size and risk tolerance. While ICHRAs transfer financial responsibility for coverage choice to employees, level-funded plans involve shared risk between the employer and insurance. Employers might also combine level-funded plans with HRAs to cover specific costs, like fertility, allowing for a flexible, capped structure without committing to extensive health benefits upfront. Case studies highlight employers integrating HRAs for specific benefits, such as IVF, which helps contain costs while offering targeted employee support. This layered approach provides a practical solution for balancing cost containment and employee needs.

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.