The strategic potential of ICHRAs by employer characteristics

Knowing what the acronym ICHRA stands for is one thing. Understanding how to maximize the strategic potential of Individual Coverage Health Reimbursement Arrangements is another.

An effective healthcare strategy strikes a balance between cost savings, regulatory compliance and employee satisfaction. As healthcare costs continue to rise year after year, placing increasing pressure on employers who sponsor group plans for their active employees, the ICHRA is gaining traction as a potential alternative.

In this case study, we evaluate the impact of an ICHRA strategy on medium to large employers by using Alight’s proprietary modeling tool to compare projected costs under traditional group plans versus an ICHRA approach. We also show how ICHRAs can offer a practical option for smaller employers without the resources to manage a group plan.