Build Me Up: Simplifying ICHRA with KA Insurance
The complexity of health insurance and employee benefits can be a bit overwhelming for a lot of people. As of January 2020, there is a new type of HRA, called the Individual Coverage Health Reimbursement Arrangement, or ICHRA. This innovative new system, while it may seem complex, is meant to keep things simple for both the employer and the employee.
At Kraus-Anderson Insurance, part of the KA family of companies, the independent agency is dedicated to navigating the ever-changing world of employee benefits. ICHRA is meant for businesses of all sizes, with an emphasis on giving employees plenty of choices.
On the latest episode of the Build Me Up podcast, we sat down with Kraus-Anderson Insurance’s Vice President of Employee Benefits Kelly Brenna and Senior Benefit Advisor Jenny Pine, to break down ICHRA and what it means for both the employee and the employer.
How Does ICHRA Work?
- Employers define their health benefits plan, including employee eligibility and reimbursement limits.
- Employees choose the plan that works best for themselves and their families.
- Employees submit claims to their employer for reimbursements on qualified medical services.
- Employers reimburse employees for qualified claims based on reimbursement limits.
ICHRA gives employees the freedom and flexibility to purchase the individual plans that work best for their needs. This is a major advantage over traditional group plans, where employers choose a “one size fits all” plan, and employees are limited to the options laid out by the employer.
ICHRA may not be the perfect solution for every employer, but it is a viable option. Benefits can quickly get confusing and overwhelming, and Kelly and Jenny agree that KA Insurance prioritizes making the benefits process as simple as possible. It can often be an emotional decision that is closely tied to your own health or the health of your loved ones. ICHRA aims to take away some of the fears, allowing flexibility for all employees, whether they just need an annual physical, or they are navigating a chronic health condition.
To learn more about ICHRA and the world of employee benefits, tune in to the latest episode of KA’s Build Me Up podcast.