The individual market has seen relatively flat overall premiums year over year for the past 5-7 years. One of the largest variables for traditional group plans that increases costs is group risk due to high claims. SureCo's ICHRA model transfers that risk to the general population (~13 million individuals), so you take risk management and variable costs out of the equation.
ICHRAs can potentially save companies money over traditional group health insurance plans through several key mechanisms. With ICHRAs, companies provide employees with a set allowance to purchase individual health insurance plans, allowing for greater cost control. Instead of shouldering the burden of providing a one-size-fits-all group plan, companies can allocate a fixed budget for each employee based on their individual needs and demographics. This empowers employees to select plans that suit their preferences, potentially resulting in lower costs due to the ability to choose more affordable coverage options.
Additionally, ICHRAs eliminate the administrative costs associated with managing a traditional group plan, such as enrollment, claims processing, and compliance. By transitioning to ICHRAs, companies can streamline their administrative processes and allocate resources more efficiently.
Overall, the flexibility, cost control, and reduced administrative burdens associated with ICHRAs can contribute to significant cost savings for companies when compared to traditional group health insurance plans.
Try our Savings Calculator to get an estimate of how much your company could save on premiums with SureCo.