Report benchmarks composition, HRA design trends for businesses reimbursing for health insurance
DALLAS, Oct. 29, 2020 /PRNewswire/ -- Take Command Health, an HRA administrator, unveiled their inaugural ICHRA report just in time for open enrollment. The Individual Coverage HRA (ICHRA) is based on businesses reimbursing employees for health insurance rather than buying it for them. It's available to companies of all sizes without reimbursement limits.
"With open enrollment here, many businesses are evaluating their options for benefits, searching for flexible and budget-friendly options," shares Jack Hooper, CEO, Take Command Health. "Our report benchmarks what similar companies are doing and makes a strong case for the tax-advantaged reimbursement model of health insurance."
Key findings include:
Our clients have reimbursed millions in benefits in the first nine months of offering an ICHRA
Clients ranged in size from 1-151 eligible employees
Percentage of employers reimbursing for medical expenses and premiums: 60%; Premiums only: 40%
Employers scaled rates across an average of one to five classes. 26% of classes included workers outside of geographical areas (i.e., remote workers)
California, Texas, Florida, Pennsylvania, and New York in ICHRA signups, thanks to their strong individual markets.
Professional services, nonprofits/churches, tech companies, and healthcare providers/services lead in signups.
58% of employees participate in their ICHRA benefit, which is in line with the national average for employer-sponsored group coverage participation.
Average reimbursement rates: $749.93 for singles, $847.20 for couples, and $931.95 for families.
Recent client survey found that 1 in 5 clients who responded are women-owned businesses, 1 in 10 are veteran owned businesses, and 1 in 13 are minority-owned businesses.
Survey respondents rated budget control and flexibility at the top of their list for ICHRA benefits.
"Despite the uncertainty that we've all faced these past few months, we've seen signups for Individual Coverage HRAs climb steadily and double since January," adds Hooper. "Carriers are returning to the individual market and individual premium prices are stabilizing—critical factors in the success of this new HRA."
About Take Command Health
Take Command Health is a recognized leader in QSEHRA administration, launched the first-to-market Individual Coverage HRA platform, and is the only HRA administrator to also offer individual enrollment support.
Take Command Health
SOURCE Take Command Health