With more punishing government mandates why in hell would an employer continue to put his business at risk by continuing a traditional group health insurance plan when he could simply offer a defined contribution plan allowing employees to pick and choose individual coverage on the open market?
An ICHRA gets the employer out of the health insurance business. And it still offers employees health insurance that is (1) guarantee issue, (2) no pre-existing limitations, (3) fully portable from one job to the next at the same rates, (4) participants select the level of benefits that suits their individual needs.
ICHRA’s have never looked more attractive. More government meddling continues with the recent developments regarding the Mental Health Parity and Addiction Equity Act. Failure to comply could lead to harsh results for employers. They could face punishing government sanctions as well face expensive lawsuits brought by their own employees. And the cost of compliance is going to be significant too. Plus the time and effort HR must expend towards compliance efforts makes group health insurance a less attractive option compared to hassle free ICHRA’s or conventional fully-insured plans.
And one wonders why most manufacturing has gone to other countries.
Mental Health Parity Act: A Compliance Wake-Up Call
“[This article will:] [1] [D]iscuss the new MHPAEA requirement, the DOL’s recent settlement and why both of these items matter; [2] Highlight some issues plans — especially self-funded plans — and insurers are facing in attempting to comply with this new requirement; and [3] Provide action steps that plans and insurers can take to help meet this requirement.” MORE >>
