Episode Summary
This in-depth audio masterclass from Reagan Olson of Take Command Health examines the evolution of employer-sponsored health benefits and new regulations like ICRA that are enabling a shift from group to individualized coverage.
For decades, employers provided defined benefit group health plans with standardized benefits. But as costs rose, choice and flexibility diminished. Now, defined contribution approaches are empowering employees through personalized options and greater control.
Central to this transition are new rules like ICRA (Individual Coverage Health Reimbursement Arrangements) that allow tax-free premium reimbursement. The 21st Century Cures Act (2016) first enabled this for small employers via QCERA. In 2018, HRA regulations expanded reimbursement options. ICRA rules were finalized in 2019 and took effect in 2020.
So how does ICRA work? Unlike previous HRAs, ICRAs have no group plan requirement. Employers of any size can set up an ICRA to reimburse employees tax-free for individual plan premiums and expenses. Employees get personalized plans and submit receipts to their employer for reimbursement.
ICRA brings design flexibility around eligibility, classes, and contribution amounts. It also changes affordability calculations, which can impact premium tax credit eligibility.
Early ICRA adopters include tech companies and franchises seeking to customize benefits. However, ICRAs may not work everywhere due to individual market issues, administrative challenges, or tax credit impacts.
Reagan explores ICRA details around eligible expenses, contribution limits, coordination with HSAs, and more. With clear explanations and strategic insights, this masterclass is essential listening for any employer navigating the shift to defined contribution benefits.
Timestamps
(0:00:04) - Today we are diving into a niche topic. Reagan Olson from Take Command Health is presenting
(0:00:32) - Welcome to the broker link, where we empower insurance agents to sell more
(0:01:23) - HRAs could be a big player in health insurance, but it's too early
(0:08:45) - QcERA and ICA interact with premium tax credits
(0:11:01) - ICRA is the individual coverage health reimbursement arrangement
(0:15:07) - Employees and their dependents get to go shopping for coverage through ICRA
(0:20:59) - How is affordable defined? So right here in 2021, we have an affordable percentage
(0:30:47) - We're seeing larger employers moving away from group plans for ICRA
(0:37:04) - All right, thanks for listening. Hopefully, you got some value from this today
