As a group insurance broker, your clients depend on you to guide them in identifying the best health insurance options for their employees. Staying ahead of the curve and providing valuable insights is essential to better serve your existing clients and grow your book of business. With the introduction of the Individual Coverage Health Reimbursement Arrangement (ICHRA) in 2020, there’s a new solution that’s designed to provide greater flexibility and control over healthcare benefits, and it's crucial to understand which types of companies can derive maximum advantage from this innovative approach. Take a look below at an exploration of the characteristics of companies that are an ideal fit for ICHRA benefits.


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Companies With 100 to 2,500+ Employees 

Small and medium-sized businesses often struggle with providing competitive employee benefits via traditional group health insurance plans due to budget constraints and high costs. ICHRAs provide flexibility in terms of budget allocation, enabling employers to control costs while also enabling employees to choose coverage that best meets their individual needs. For larger groups, an ICHRA administrator with scalable technology is essential. SureCo’s Enrollment Platform allows companies to enroll large numbers  of employees in individual plans with ease. 


Companies With High Turnover or Seasonal Workforces

Industries with high turnover, or those with seasonal or variable hour workforces, such as hospitality, retail, or construction, often face challenges with traditional group plans. ICHRAs allow employers to offer healthcare benefits to employees who may not meet the eligibility criteria for group plans due to their fluctuating work hours. It provides stability and security for these employees, enhancing employee satisfaction and retention.


Startups and Growing Companies

Startups and growing companies often experience rapid changes in employee headcount, making it challenging to maintain stability in their group health insurance plans. ICHRA can be an excellent option for these companies, as it eliminates the need for minimum participation requirements so fluctuations in workforce aren’t a concern, and it aligns well with their culture by offering a flexible and customizable healthcare solution. These companies can leverage ICHRA to attract top talent, provide enticing benefits packages, and adapt their coverage offerings as they grow.

Companies With Diverse Employee Demographics

Employers with diverse employee demographics, such as different age groups or geographic locations, can benefit significantly from an ICHRA. Traditional group plans often have limited options that might not cater to the unique needs of each employee. With an ICHRA, employers can offer different reimbursement amounts or coverage tiers based on employee classifications, such as full-time, part-time, or salaried employees, and ICHRA allows employees to choose individual health insurance plans that suit their specific requirements, ensuring comprehensive coverage and increased employee satisfaction. 


Companies Considering Self-Funded Plans

If your clients are considering going self-funded and taking on the responsibility of paying for employees’ healthcare expenses directly, an ICHRA is an alternative worth suggesting. With an ICHRA, companies set a specific budget to reimburse employees a set amount for their plans and eligible expenses. This can help ensure cost predictability, potentially reduce financial risks associated with unexpected medical claims, and relieve the administrative burden for the company. 


With its dynamic and cost-effective approach to employee health insurance, ICHRA plans can benefit a wide range of companies. Remember, each company is unique, so conducting a thorough assessment of their specific needs and consulting with a benefits expert is essential to determine whether ICHRA is the right fit. As a trusted advisor, embracing the opportunities presented by ICHRA can proactively empower your clients to build comprehensive and flexible health insurance programs for their employees. 


SureCo’s ICHRA Solution offers an innovative approach that meets the needs of benefits brokers/consultants, employers, and employees. Talk to a SureCo Benefits Expert to find out more about how you can help your clients attract and retain talent, promote employee well-being, and create a competitive advantage in the market.

Download SureCo's ICHRA Guide

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