Does this sound familiar? You’re evaluating the renewal for a medical group health plan for a client, and you have a 40+% renewal staring you in the face. You know you can probably make some plan design changes and possibly negotiate that increase down a bit, but will that be enough? Perhaps you ran into this exact same issue last year. How many years in a row is this sustainable?
It’s never easy trying to navigate a large renewal with a client. If it happens year after year with the same client, it can become even more difficult to find a solution. How many years in a row will a client want to switch carriers? Or possibly tweak plan designs to make them less rich?
If you’re running into this issue, or any other issue that is no longer making the group health market appealing for a client, it’s time to consider ICHRA.
ICHRA, an Alternative to Traditional Group Health Insurance
ICHRA stands for Individual Coverage Health Reimbursement Arrangement. With ICHRA, an employer would provide tax-free dollars to their employees who would then go out and purchase coverage on the individual market.
An ICHRA is cost-effective for employers as they can easily control costs and maintain their health benefits. There are no minimum participation requirements with ICHRA. There is also flexibility in how the employer contributions can be set up. This arrangement also gives employees the ability to choose the right coverage based on their needs.
Additionally, ICHRA is still considered a group health plan and can satisfy the employer mandate. This makes ICHRA a compelling alternative to traditional group health insurance.
If you’re thinking that the above all sounds good, you may be wondering what are the next steps? How do I learn more or set up an ICHRA for a client? This is where we step in and help.
Bavvy, Our ICHRA Solution
Our ICHRA solution is called Bavvy. We provide a platform for implementing and supporting groups on ICHRA. We also provide consulting to help you and your clients with determining the feasibility of an ICHRA. Additionally, we help with setting up contributions that meet the employers needs while also meeting the affordability rules.
Bavvy is a broker-friendly solution. We will work alongside you to support your clients.
If you would like to learn more about Bavvy Contact Us!