Year after year, for many employers it’s the same story. The cost of employee benefits keeps rising, causing many companies to look for ways to plug the leak. This often means reducing benefits and shifting more of the cost to employees, but it doesn’t have to.

An Individual Coverage Health Reimbursement Arrangement or ICHRA (pronounced ick-ruh) is the next generation of employer-sponsored health care coverage. It not only provides richer benefits for employees, but also saves money for employers. Here’s how it works.

Employees choose the health plan that best suits their needs. Meanwhile, the employer has set aside a certain amount of money to reimburse employees for costs such as premiums, copays and deductibles.

What’s in it for employers

There is no minimum or maximum an employer must contribute, and they can reimburse employees on a tax-advantaged basis.

ICHRAs can be provided for full-time, part-time, seasonal, salaried and hourly employees.

Employers can enter the next year knowing exactly what they will spend on employee health care, so the guessing game is replaced by a healthy bottom line.

By providing a flexible plan option, organizations can attract and retain top talent that wasn’t getting the right coverage under a group health plan. With six generations in the current workforce, employers who offer flexible benefits stand out from the competition.

Employers will work with a benefits administrator, eliminating the need for insurance companies to work directly with employees, which can be a confusing and drawn-out process.

Contact Frank Spinelli at [email protected] or 330-662-0585 to learn more.