PeopleKeep, a leader in personalized benefits for small and medium-sized businesses, has launched its third and final installment of its 2021 report on the individual coverage HRA (ICHRA).
The report is a summary of customer survey data from employers who currently offer an ICHRA to their employees. The data, collected via an online survey from August 24 to September 15, offer a sentiment analysis on how employers feel about their ICHRA benefit, why they chose it over other group health insurance options, their likelihood to renew their benefit in 2022, and more.
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Key findings from the report include:
The number one reason employers want to offer an ICHRA is because it allows their employees to choose their own health insurance plans.
90% of employers surveyed already plan to renew their ICHRA benefit in 2022, even before group health plan price quotations are generally available for the new year.
Nearly 70% of employers surveyed find that an ICHRA is more flexible than other group health insurance options.
65% of employers surveyed are interested in seeing the federal government expand the number of alternatives to employer-sponsored group health insurance.
Victoria Hodgkins, CEO of PeopleKeep, explains how the results reveal the biggest advantage of an ICHRA: “While the survey found that the vast majority of small and midsize employers believe an ICHRA is more affordable, flexible, and easier to administer than traditional group health insurance plans, the best thing it does for them — and what they care about most is the ability to offer a personalized benefit to their employees.”
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“Group plans lump everyone into the same policy regardless of their age or health status, but an ICHRA allows employers to reimburse their employees, tax-free, for an individual health plan that makes sense for each specific employee and their family.”
The ICHRA may just be the beginning of choices employers have in the future when it comes to exploring alternatives to group health insurance. The survey asked customers if they’d be interested in seeing the federal government expand the number of employer-sponsored health benefits options, like the PeopleKeep ICHRA, and 65% agreed.
As employers look for more innovation, the survey results show that the ICHRA benefit is very much here to stay with the employers who have adopted it, as nine out of ten stated their intention to renew for 2022.
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