With rising health care costs, more employers in Georgia are abandoning group health insurance plans and saving up to 15% in the process.
The introduction of Individual Coverage Health Care Reimbursement Agreements (ICHRA), a new type of health care reimbursement agreement that helps control employee health care costs and provides more flexibility, helps to this trend.
ICHRAs (pronounced IK-rahs) became available in January 2020 thanks to changes in IRS regulations that allow employers subject to the requirements of the Affordable Care Act to reimburse employees with non-taxable dollars for plans. of their choice. A recent study found that 15% of employers surveyed concerned about budget constraints intend to adopt ICHRAs in 2022 and beyond1.
The new tools and technologies that facilitate the transition to this new healthcare solution are a second major driver of this trend. Digital platforms like HRASimple reduce the administrative burden of managing a group health plan and help businesses run an ICHRA.
âWe were spending more and more each year on group health insurance for our employeesâ¦ and budgeting for this benefit was becoming more of a problem than a benefit,â says Julie Soekoro, CFO of Hamilton Health Care System in Dalton, Georgia. âHRASimple took the angst of annual renewal increasesâ¦ and stabilized my budgetâ¦ in addition to saving our organization over $ 7 million in 2021, which saved a lot of jobs during the pandemic. For our organization, it was a real win-win for everyone involved. “