Empowering Benefits for Business
What is ICHRA?
ICHRA stands for Individual Coverage Healthcare Reimbursement and it allows employers of all sizes to provide pre-tax dollars to their employees for reimbursement of health insurance premiums and qualifying healthcare expenses.
How can ICHRA Benefit my Business?
By switching to a defined contribution model, all employers simplify their process. Employers with <50 employees satisfy the employer mandate, while limiting their financial exposure.
How can ICHRA Benefit my Employees?
Employees use pre-tax dollars to choose a qualifying plan based on their specific situation, that best fits their needs. It allows them to be more involved in the decision making process from the start.
Who we serve
Our Unique Benefit Offering Cover Employers of
Less Than 50 Employees
Small business employers today are facing tremendous challenges. Investing on the growth of your company and keeping one to two steps ahead of your competitors is not an easy task. While we cannot help you in every area, our team of insurance and benefit professionals are able to help you & your employees every step of the way.
Growing companies face tremendous challenges because of new government regulations, having employees in multiple locations, and an employee base as diverse as your clients. The demand to recruit, train and more importantly retain the best talent possible, requires more than just a solid paycheck.
More than 250 Employees
Your continued growth will depend on six success factors all companies face. Competitive products, outstanding customer service, talented senior executives, seasoned management and dedicated employees to help push your continued growth towards becoming a $100 million-dollar company.
An effective approach
ICHRA is the best approach to get your employees engaged and participative in the future of their healthcare.
Today, your retirement program is not a defined benefit pension plan as it was thirty years ago. Employers, since 1980, have moved to a 401k approach which has gotten the employees engaged and more knowledgeable about being an active participant in their financial future. We believe ICHRA is the same approach to healthcare as 401k was and is for financial management.
Why the 401K analogy?
The Revenue Act of 1978 brought about significant change in the way employers assisted their employees with financial management, more importantly financial freedom, by a little-known provision at the time called 401k. In 1980, the 401k provision went into effect. However, it took almost a decade before employers moved almost entirely away from defined benefit pension plans to an approach to get their employees engaged in their retirement planning. Now, forty years later, most Americans are participating in a 401k type of retirement savings plan.
We believe that ICHRA is the watershed regulatory change that will create the next forty year run in getting employees engaged in the financial management of their healthcare and their healthcare journey. Why do we believe this is going to become the 401k moment for healthcare? Just like the days before 401k, employees were not engaged in their financial management. Employers that offered a retirement plan offered a defined benefit pension plan. The employee received a percentage of their final three to five years of their compensation no matter how the financial markets were performing. Similar to traditional employee benefit plans today, the employees had no real say in the management nor the ability to really enhance their benefits without doing something outside of the employer program. ICHRA changes all of that, in the way 401k changed the way both the employer and employees manage individual retirement planning.
How it works
In a Few Simple Steps…
Designs a Plan
Define which employees are eligible and create limits on reimbursement amounts.
Employees purchase individual insurance based on their particular needs.
Based on the type of plan, employees submit their insurance premium expenses in the form of a claim for reimbursement.
Employees are reimbursed for the claims that have been approved.
WHAT ARE QUALIFIED MEDICAL
“Qualified medical expenses” are defined by the IRS in publication 502. If
you’re familiar with Health Savings Accounts (HSAs), this is the same list.
It includes things like doctor visits, co-pays, prescriptions, medical
equipment, dental procedures, etc. Employers can choose to only
reimburse certain types of medical expenses (ie, only prescriptions) as
long as whatever elections are made are offered fairly to employees.
Want to find out how MPowering Benefits can solve problems specific to your business? Let’s talk.