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
How Getting Married Affects Your Health Insurance
Getting married means lots of conversations about combining everything from last names to bank accounts. While picking a health insurance plan that covers both of you may seem practical, there are cases in which maintaining separate policies makes more sense.
How to Save Money on Prescriptions
If you are among the 55 percent of Americans that are taking a prescription drug, you may be concerned about the affordability of medication therapy. Fortunately, there are a couple of things that you can do to ease the financial burden.
Have You Recently Lost Medicaid Health Insurance?
If you are currently on Medicaid, there are some scenarios in which you may soon be at risk of losing your coverage. Knowing your options can help ensure that you do not have a gap in health insurance coverage.
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
How Many Hours Can You Safely Drive?
If you are not accustomed to spending hours per day in your car, it can be difficult to determine how quickly you should aim to reach your destination.
Safety Tips For Driving In The Rain
In Las Vegas, roads are particularly slick at the beginning of the storm. That is because they are built without a drainage layer. Dust, oil and grime collect on the surface of the road. When it rains and these mix with water, the dirt settles to the bottom and the oil rises to the top, creating a very slick surface.
Understanding Motorcycle Insurance
If you ride a motorcycle, then you need an insurance policy that protects you and your investment. Understanding what coverage is available and even more importantly, what coverage is legally mandated, can ensure that you enjoy your bike for years to come.
Buying a Used Car From a Private Seller
The vehicle’s history report includes information such as its previous owners, open recalls and damage, accidents, repairs, maintenance history, and odometer readings. If you are buying the vehicle from a dealership, then they will probably provide you with the report if you ask for it.