America's Benefit Specialist December 2022

ICHRAs SEE TRIPLE-DIGIT GROWTH

The HRA Council Leander, Texas www.hracouncil.org

The HRA Council has released its inaugural HRA Report (www.hracouncil.org/report), an industry-wide snapshot of the uptake of newer models of Health Reimbursement Arrangements like the Qualified Small Employer HRA (QSEHRA), established in 2017, and the Individual Coverage HRA (ICHRA), established in 2020. The HRA Report highlights the phenomenal growth of these defined-contribution models and emphasizes their critical role in bolstering the health of the ACA marketplace, broad

ening access to quality care, and delivering more flexible benefits options for historical ly underserved and under-resourced small and midsize businesses. “Health Reimbursement Arrangements are a popular bipartisan policy solution to cover more Americans with affordable, quality health insurance,” said Robin Paoli, executive director of the HRA Council. “Employees are empowered to choose the coverage they want from respected region al and national insurers, and employers are

empowered to offer predictable, cost-ef fective benefits with fewer administrative burdens.” Not since the explosion of the 401K has there been an opportunity to transform employee benefits like ICHRA. Access to affordable health coverage is critical to attract and retain employees but, just as we don’t expect our boss to pick our grocery store or choose what kind of house we live in, we shouldn’t settle for a one-size-fits-all approach to employer-sponsored health care. This data shows that more employers are realizing the benefits of a predictable budget that helps their employees pick the robust benefits they need. HRAs are doubling on average among all states, with significant growth across all industries, types of employers and employee groups. Ninety-two percent of adoption is

ICHRAs, IN PARTICULAR, ARE EXTENDING BENEFITS TO TRADITIONALLY DIFFICULT-TO-INSURE GROUPS.

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