The key components of their ICHRA implementation included:
Nominal Employer Contribution: The company contributed $250 per employee per month towards healthcare costs. This contribution helped to make healthcare coverage more accessible to their employees.
Utilizing Government Subsidies: Recognizing that many of their employees fell within the income range for government assistance, the company encouraged its workforce to explore the Annual Premium Tax Credits (APTC) offered by the government. These credits helped employees and their dependents pay for insurance premiums.
Dependent Coverage: The ICHRA plan extended to cover dependents, allowing employees with families to benefit from the employer’s contribution and government subsidies.
The implementation of ICHRA yielded several positive outcomes for both the company and its employees:
Cost Savings for the Company: By switching to ICHRA, the company reduced its healthcare expenses while still offering a valuable benefit to employees. The $250 per month per employee contribution was more sustainable than the previous group insurance plan.
Improved Employee Affordability: Many employees, particularly those with lower incomes, found that ICHRA, combined with government subsidies, made health insurance premiums much more affordable. This significantly reduced the financial burden on employees.
Increased Flexibility: Employees now had the flexibility to choose healthcare plans that best suited their individual needs and preferences, rather than being limited to a single group plan.
Higher Employee Satisfaction: The ability to choose their own healthcare plans and the financial support provided by the employer and government subsidies led to increased employee satisfaction and morale.
Family Coverage: Employees with dependents were able to provide healthcare coverage for their families at an affordable cost, with many qualifying for 100% subsidized health insurance plans.
Please contact Palmetto Insurance group to see how implementing an ICHRA benefit plan will impact your company.
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