If you’re reading this, you’ve already been thinking that an Individual Coverage Health Reimbursement Arrangement (ICHRA) might be the health benefits alternative to a traditional group plan that your company or clients need. You’ve likely already taken a deep dive into the types of companies that tend to benefit most from switching to an ICHRA. But you may be worried that switching health insurance models is going to be a long and lengthy process that could overwhelm HR teams that already stretched thin. With the right ICHRA administration partner, though, migrating to an ICHRA is simpler than you think. The process is actually faster than other cost-saving alternatives, like going self-funded.
Let’s take a closer look at how long it takes to implement an ICHRA solution if you’re currently fully insured. While there’s no formal time requirement, when you talk to a SureCo benefits expert about making the move, the first things they will ask are: What is your goal? When are you looking to have the ICHRA benefits in place? That will define the timeline in which our team will work with you to make the switch in a way that’s most effective for the company and ensures employees have all the ICHRA information they need.
Here, Jennifer Ross, SureCo’s own Enterprise Operations Director and lead migration specialist, answers common questions about the ICHRA timeline.
First, are there any regulatory requirements to consider?
Right now, the general regulatory requirement is that the ICHRA notice needs to be sent to employees in a timely manner. However, it’s worth noting that just as with any individual health plan, with an ICHRA, an employee must be enrolled and have the plan paid for by the 15th of the month before the plan becomes effective.
Second, is there a time frame that’s too short for implementing an ICHRA?
Yes. If you’re trying to turn this around in less than 30 days, it’s going to lead to a rushed situation that doesn’t leave enough time to make sure everything, especially the employee education component, is in place.
So, is there a standard time recommended?
In general, we recommend a 60-day period in order to allow the plan to be sufficiently fleshed out and executed. A more specific timeline will depend on understanding a business’s goals, but for most companies, this is a good starting point to consider for your calendar.
When is more time needed beyond 60 days?
Considering the general 60-day suggestion, more time will be needed if the company wants a more specialized experience. For instance, if you want to see if SureCo can integrate with a company’s HRIS system, there’s an additional 30-day scoping piece during which time our experts look at your individual system. In general, we like to have at least 90 days to implement a custom integration.
Whatever your timeline, if you’re ready to seriously consider switching to an ICHRA, or just want more information on what the process would look like for you or your client specifically, we’re ready to start the conversation with you now. Schedule a 15-minute consultation with one of our experts, and we can start working together to set a realistic timeline that works for you.