In the world of employee benefits, we sometimes feel like we've stumbled upon an incredible secret: a way to slash healthcare costs for both employers and employees, without sacrificing quality care.
5 Reasons Why 2024 will be the "Year of the ICHRA"
Our team here at Venteur consistently see Individual Coverage Health Reimbursement Arrangements (ICHRAs) save businesses millions of dollars and reduce employees’ out-of-pocket medical costs – sometimes to $0.
Sounds like a no-brainer, right?
Not so fast. When it comes to healthcare, we humans hold onto the familiar like it's a life raft in a hurricane – even if it's sinking. Despite its extraordinary benefits, ICHRA adoption today is less than 1%.
But the tide is turning. Recent rumblings in the industry, like Centene's recent Investor Day prediction that ICHRA is set to disrupt 45% of employer health insurance market, point towards a sea change. 2024 will be the year of the ICHRA.
Why should you care? We're about to unveil five reasons that'll make you want to jump on the ICHRA bandwagon.
1. Rising healthcare costs are drowning businesses and employees alike.
Group health insurance premiums saw record increases in 2023 – a trend that is expected to not just continue, but get worse in 2024. These skyrocketing costs are squeezing budgets and leaving everyone gasping for air. ICHRAs offer a life preserver, allowing businesses to set predictable budgets and employees to choose personalized plans that fit their needs and wallets. Win-win!
2. ACA individual plans are no longer the underdog.
Remember those once-scorned “Obamacare” plans? They're getting better, cheaper, and increasingly popular. Insurers are adding more and more perks. For example, Blue Shield of California members benefit from free telehealth from Teladoc. United Healthcare offers its members discounted Peloton memberships. Oscar and Aetna have negotiated strategic partnerships with top health systems like Cleveland Clinic in Ohio and Banner in Arizona to offer improved access to care. ICHRAs allows employees to leverage these plans, putting them in control of their healthcare like never before.
3. Millennials and Gen Z aren't just avocado toast enthusiasts, they're wellness warriors.
And they crave benefits that support their holistic health priorities. ICHRAs give them the funds to invest in whatever wellness adventure speaks to their soul like therapy visits, accupuncture, and more. Millennials and Gen Z also expect a different healthcare experience than previous generations. They want transparency and control over their healthcare choices.
4. Medical debt is the monster under the bed nobody knows how to make go away.
But ICHRAs can help slay that beast by turning health insurance into a financial management tool. ICHRAs allows employee to care for their families at price points that work for them rather than price points that were decided for them by someone else. In addition, employees can track spending, compare plans, and make informed choices, taking control of their health and their wallets.
5. AI is about to revolutionize healthcare, and ICHRAs are the perfect dance partner.
Imagine personalized care plans, tailored treatments, and preventive interventions, all powered by the magic of artificial intelligence. ICHRAs can bridge the gap between traditional insurance and this future of personalized healthcare, ensuring your employees get the cutting-edge care they deserve.
This is just the tip of the iceberg. ICHRAs are a win-win-win for employers, employees, and the future of healthcare. The future of healthcare is here, and it's called ICHRA. 2024 is the year to lean in and learn more about the healthcare revolution underway.
Ready to learn more? Sign up for our newsletter or schedule a convo with our team of ICHRA experts.