The
versatility of an ICHRA, employees can utilize pre-tax dollars to purchase
health care coverage or pay for qualified medical expenses, such as
out-of-pocket costs like deductibles and coinsurance.
Although an ICHRA is available for groups of any size, it’s up to each employer to determine if the ICHRA presents a strategy that will work for their particular circumstances and benefit objectives. Over the first two years of
its existence, these programs have become increasingly popular as an
alternative to the traditional, direct contribution model.
An employee who elects to participate in an ICHRA offered through their employer must enroll (along with any covered dependents) in either individual health care coverage (through the Marketplace or through a private plan) or in Medicare Part A (Hospital Insurance), Part B (Medical Insurance) or Part C (Medicare Advantage). Short term plans and limited benefit programs like dental or vision do not fulfill these coverage requirements.
It is necessary that coverage in one of the required programs start by the time the employee’s individual ICHRA begins. And if the employee and any dependents are already enrolled in individual health insurance coverage at the time their ICHRA becomes effective, there’s no need to change that coverage. Likewise, if someone is already enrolled in Medicare Part A, Part B or Part C, their enrollment will satisfy the ICHRA requirement.
The Lower Bucks County Chamber of Commerce offers its members access to My Benefit Advisor as a solution for employee benefits, including voluntary offerings. For more information about My Benefit Advisor, visit our website at ccgp.mybenefitadvisor.com or contact Marlon Richardson at (215) 790-3640.
