How can USI help our organization respond to unsustainable costs associated with our group health plan?
Many employers are facing financial pressure from double-digit, compounded rate increases to group health plans. With USI’s guidance, an Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to drop group health plan coverage while meeting ACA obligations.
USI assists employers seeking to offer a broad array of ACA-compliant individual coverages in replacement of group health coverage.
We’ve estimated the financial impact for you. Feel free to update the assumptions.
- An ICHRA plan enables employers to meet the ACA requirement that employers with >50 employees offer minimal essential, minimal value, and affordable coverage.
- Lowers costs for employees, particularly younger ones, as rates are based on age, sex, and zip code
- Eliminates many administrative burdens for employers
It depends. An ICHRA plan offers employees a wider range of coverage options they can tailor to their specific needs, including lower-cost options than would be available under a traditional group plan.
However, carrier networks tend to be smaller than those offered through group health plans, and older employees who aren’t yet eligible for Medicare would likely see higher contribution rates compared to your current group plan. Also, Medicare-eligible employees and spouses would be required to enroll in Medicare.
Various USI teams work together to ensure an economical, compliant, comprehensive employee strategy. This includes a range of communications strategies to facilitate a smooth transition from traditional group insurance to an ICHRA.
USI also helps employers implement technology that replicates employees’ experiences with managing their ​benefits under your current group plan.
USI assists employers with the selection of the appropriate ICHRA plan administrator to meet employer goals and employee needs. USI also identifies COBRA administrations that understand how to bill COBRA participants for ICHRA. USI will help employers choose which ICHRA option is appropriate for their organization:
- A simple pre-tax reimbursement amount with employee responsible for plan selection and payment
- A curated employee enrollment experience replicating a traditional benefits administration platform
I’d like to explore further how USI can help our organization transition from a group health plan to an ICHRA plan.
To get started on an underwriting analysis, USI will need just a few pieces of information, including copies of your last two renewals and a current census file that includes zip codes.