ICHRA has spawned a lot of interest on Linkedin these days, a running commentary between proponents and non-believers. Who’s right?
Propositional logic promulgates that an opinion can be valid but not sound. Validity may appear sound through one lens but clouded through another. Both lens are in pristine condition made by the same manufacturer. The eye of the beholder differentiates.
Non-believers say ICHRA is a passing phenomenon and does not solve the problem of rising health care costs.
Believers argue ICHRA is fulfilling market demand, will rapidly grow market share and has demonstrated rate increases proven to be well below industry averages.
Non-believers base their view on logical, provable, indisputable points they carefully protect much the same as opponents of dental insurance have used for years. “Dental insurance typically insures a $1,500 annual benefit with internal limitations and high administrative expenses, does not control costs and is a waste of money “ they say.
Proponents argue it doesn’t matter. Dental insurance is popular and widely accepted and used despite the math and limited benefits with internal limits. Dental insurance has enjoyed wide market acceptance and is not going away.
ICHRA is fulfilling market demand in a manner similar to what dental insurance has. Forget the math and forget the benefit. There is one overriding and compelling reason employers are adopting ICHRA faster than a melting raspa in deep South Texas on an August afternoon. Freedom.
ICHRA takes employers out of the health insurance business. They are tired and worn out. Their financial backs are against the wall. They want away from punishing government mandates and harsh penalties levied if they stray off the regulatory ranch. They want from under the government yoke. They want freedom.
It’s evident both sides have valid points but neither side is solid.
At the end of the day who is winning? The answer to that must be based on the question “Which model is replacing the other?”
The reality is ICHRA is replacing traditional group health insurance across the Fruited Plains, not the other way around. ICHRA proponents have the power of market demand on their side – DeFacto winners despite contrarian opinion.
“You cannot be sure that you are right unless you understand the arguments against your views better than your opponents do” – Milton Friedman