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Common Health Insurance Questions: What is an ICHRA?

When it comes to health insurance, you might have numerous questions. For example, what is an ICHRA?

A new year has come around at last. With a fresh start on the calendar comes a fresh start in the workplace. Even if you have been in your current job for four or five years, it doesn’t have to become rote or stale. Perhaps one of the changes in your organization is a new emphasis on employee welfare. When it comes to health insurance, you might have numerous questions. For example, what is an ICHRA? 

What Exactly Is It? 

So first of all, let’s dive into the definition of an ICHRA. If you are familiar with how an HRA works, then it won’t be much of a surprise to learn that ICHRA stands for Individual Coverage Health Reimbursement Arrangement. Essentially, tax-free money comes your way, provided by your employer; this money goes towards medical-related expenses such as health insurance premiums, copays, and prescriptions. This money is referred to as an allowance and can roll over from month-to-month. Unlike group health insurance plans, the ICHRA is completely covered by your employer, so there is no need to worry about sharing the costs or paying anything out of pocket yourself. 

How Can Employees Benefit?

So the next question you probably want to have answered has to do with the simple matter of benefits. You will need coverage under the plan even if you technically did not purchase it. Spouses or parents could do so and you would still receive the perks of protection. Meanwhile, the concept of reimbursement just refers to the cashflow involved; while you pay the entire premium, your employer will reimburse you for it. 

Can Employees Shop Around? 

Sometimes, employer-offered insurance programs will override any others you had back from before such insurance programs became a reality. The health insurance marketplace is a wonderful place to look around first. Off-exchange policies are also available, but either way, speak to a licensed health insurance broker before you make any hasty decisions. That way, your plan can be personalized and tailored to your needs rather than an “all-inclusive” package that could cost you more than you really have to pay.

A Customer Testimonial

We have yet another pleased customer to tell you about this week! Carol Craig of McCrea Equipment Company needed help with an insurance claim. Here is what she said: “I had to submit a claim and Mr. Fedo sent me the forms and what was required to submit so I could get my claim in a timely manner. I submitted the paperwork to Mr. Fedo and received my benefit in quickly.” Nice job! 

Get Your Voluntary and Supplemental Insurance Policies with the MWE Partnership!

Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet the needs of all your employees. With over 17 years of experience, The MWE Partnership is your one-stop-shop for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, then contact us today! Also, be sure to like our Facebook page and follow us on Twitter and LinkedIn for all the latest voluntary benefit news!

 

This entry was posted on Friday, January 8th, 2021 at 5:26 pm. Both comments and pings are currently closed.

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