Let’s compare what your employer is paying for your group health insurance plan vs a Blue Cross Blue Shield individual plan.
Employers can do the same. To compare rate each employee separately, add up all the employee only premium then divide by number of insureds to get a composite employee only rate.
Use the calculator here: Blue Cross and Blue Shield Easy Rate Calculator
Then consider IF an ICHRA makes sense for you. An ICHRA allows employers to fund all or a portion of the cost of individual health insurance policies and freeze their cost by a defined contribution. Employer contributions can be varied by class or age, it’s up to the plan sponsor.
Just for grins we looked up rates for a 42 year old male in South Texas who has high cost chronic health care issues, visits his doctor every other day, and takes expensive drugs. For less than $334 he can get the Gold Plan with a $1,000 deductible and free primary care visits. Or he can take the Bronze or Silver plan, it’s his choice.
Blue Cross is not the only choice. Depending upon your geographic location there are a multitude of carriers active in this space.
Both group and individual plans cover pre-existing conditions. Both are subject to minimum ACA benefit mandates and both must meet network adequacy rules.
ICHRA gets the employer out of the health insurance business. No more time spent on annual renewals, dealing with insurance brokers and all the rest that makes sponsoring a health plan so much fun these days.
That alone may be worth it.
For More Information: RiskManager@RiskManagers.us