Employers can pay a defined contribution amount (no minimum or maximum). For example an employer pays $350 for those employees who purchase an individual health plan.
ICHRA’s take the employer out of the health insurance business. No more punishing government mandates to worry about, defined contribution limits employer’s cost, employees own their plan and can take it with them plus they can choose benefit levels best for their individual needs.
So why aren’t ICHRA ‘s not catching on in the market place?
– Popular perception group plans are better
– Individual plan’s usually have narrow networks
– Few carriers to choose from
– Brokers not interested in selling due to low commissions and adverse to service intense product line
– Insurance consultants threatened with extinction – selling against ICHRA’s
Despite all this many believe ICHRA’s will gain market traction in 2021.
FROM PHYSICIAN
Oscar pays providers at submedicare rates. Decent Health much better.
