Group Health Insurance
Individual Coverage Health Reimbursement Arrangement
Beginning in 2020, some employers will have the option of reimbursing employees’ health insurance premiums by using an ICHRA as an alternative to providing a group health insurance plan. This change will provide a great deal of flexibility for both employers and employees, letting employers control costs while letting employees find a health insurance plan that will fit their lifestyle.
What Is an ICHRA?
An individual coverage health reimbursement arrangement, or ICHRA, is an employer-funded health benefit used to reimburse employees for healthcare expenses. With an ICHRA, businesses of any size can provide their employees with a monthly allowance of tax-free money that can be used to pay for approved health care services, including individual health insurance.
The Pros and Cons of ICHRAs
As with traditional employer-sponsored health insurance, ICHRAs have their positives and their drawbacks. If you’ll be purchasing health insurance using an ICHRA in 2020, talk to a health insurance agent for guidance.
Pro: ICHRAs are Tax-Free
The ICHRA is a formal IRS-approved benefit, meaning that neither the business nor its employees have to pay payroll tax on the money put into it. On top of that, the employee doesn’t pay state or federal income tax on it.
Con: Employees Aren’t Eligible for Premium Tax Credits
Part of what makes individual health insurance affordable, even for those with low income, is the premium tax credits that participants may be eligible for. However, if you’re an employee participating in the ICHRA, you are ineligible for those tax credits. On the flipside, if you qualify for tax credits and health insurance would be unaffordable even with the HRA allowance, you have the option of opting out of the ICHRA and using your premium tax credits.
Pro: It Provides More Options for Employees
When your employer is determining which health insurance plan they’ll offer to employees, chances are that your personal health needs aren’t factored in. With an ICHRA, you get to select a health care plan that provides the coverage that you and your family needs, rather than being stuck with whatever plan your employer opted for on a given year.
Con: It Doesn’t Provide Health Insurance Benefits to Everyone
Companies that offer health coverage through ICHRAs are unable to provide benefits to uninsured employees, those who are on their spouse’s health insurance plan or those who participate in a healthcare sharing ministry plan. Only those with individual health insurance and Medicare can participate in the ICHRA.
Nevada Insurance Enrollment Is Here to Help
If your employer will offer an ICHRA and you’ll be purchasing individual health insurance for the first time, you have access to free help. At Nevada Insurance Enrollment, we’ll help you find the best coverage for you and your family. Our health insurance agents help you review your health needs, determine your budget and find a plan that will fit your lifestyle. Our professional assistance comes at no cost to you, making it the simplest and most cost-effective option for finding great health insurance.
Recent Posts
Health Insurance: What is a Single Payer System?
A single-payer health care system is one in which there is one party that collects all healthcare fees and covers all health care costs. In theory, this could reduce medical costs because there would be significantly fewer entities involved in the system, thus cutting down on administrative costs.
What Is A State Based Health Insurance Exchange?
In most cases, when someone is talking about state-based health insurance, they’re referring to a health insurance plan that is regulated by the Department of Insurance in that state. These plans are sold through state health insurance exchanges.
Health Insurance Options For Laid-Off Workers
If you rely on employer-based health insurance and you lose your job, you may wonder what happens if you need medical care before you are able to get new coverage. Fortunately, there is COBRA, a law passed in 1986 gives many workers and their families the right to retain their health insurance even if they quit or lose their jobs.
Search This Website
Most Popular Pages
By page visits (this month)
#1) Health Insurance Subsidy Chart
#2) Health Insurance
#3) Health Insurance WITH a Subsidy
#4) Insurance Blog
#5) Request a Quote
Top 5 Most Popular
By page visits (this month)
#1) Health Insurance Subsidy Chart
#2) Health Insurance
#3) Health Insurance WITH a Subsidy
#4) Insurance Blog Posts
#5) Request a Quote
Recent Posts
Health Insurance with a Preexisting Condition
You may assume that since you have a preexisting condition, you’ll pay a higher premium than someone who is in perfect health. However, an insurer cannot reject you, refuse to pay for health benefits pertaining to your illness or injury, or charge you a higher premium because of your condition.
Is Physical Therapy Covered Under Health Insurance?
Whether you have recently been injured or you are experiencing chronic pain or limited mobility, going to a physical therapist can greatly improve your quality of life. For many people, concerns about how much regular sessions cost is a big roadblock to getting much needed care. Fortunately, if you have an ACA-compliant health insurance plan, rehabilitative services like physical therapy are listed among the essential health benefits.
What Is a Health Insurance Network?
Whether you’ve had the same health insurance company for years or switched to a new health insurance company, the variance in cost is directly related to whether a healthcare provider is within your health insurance company’s network (if you have a PPO), if you have a deductible to satisfy first, or if you have a co-pay.
What is a Special Enrollment Period?
The special enrollment period is always within 60 days of a life event. A “Life Event” is an event such as the birth of a baby, losing group coverage through an employer, losing coverage due to a move to Nevada, marriage, any many other scenarios.