When implementing an individual coverage health reimbursement arrangement (ICHRA), many HR leaders, benefit administrators, and brokers expect easy management, flexibility, and cost control. But as they dig deeper, it becomes clear that administration software alone doesn’t make a successful employee benefit.
While the ICHRA is an excellent way for employers to stabilize their budgets and offer employees tax-free contributions for their health coverage, there are often too many complex administrative tasks for a software-only solution to handle alone. Employers need a partner with innovative technology, expertise, and hands-on support to ensure everything runs smoothly.
This article will explore why full-service ICHRA administration is the key to delivering peace of mind for organizations and their employees.
In this blog post, you’ll learn:
- The key differences between software-only ICHRA solutions and full-service administrative options.
- Common pitfalls employers face with software-only ICHRA platforms.
- How Remodel Health’s full-service ICHRA approach delivers the total package for employers and employees.
What’s the difference between software-only and full-service solutions when offering an ICHRA?
ICHRA software-only platforms typically provide basic services, such as setting up allowances, tracking reimbursements, and generating reports. At first, this may seem sufficient. But in reality, it leaves employers and brokers handling many of the compliance issues, employee communication, and onboarding on their own.
Employers can work with a third-party administrator to fill the gaps their ICHRA software doesn’t. But that takes more time and money, which can frustrate them and their staff.
In contrast, full-service support gives you access to dedicated experts who work with you and your staff throughout the entire benefit process.
Full-service support includes:
- Ensuring employers and consultants set up their ICHRA correctly
- Staying ahead of regulatory requirements
- Helping employees shop for health insurance coverage
In addition to the comprehensive software, a hands-on ICHRA administrative option allows you to work with a trusted partner who offers year-round support from a team that cares.
What are common pitfalls that employers may face with software-only solutions for ICHRA?
While software can automate parts of ICHRA administration, it often leaves business owners with much of the responsibility of managing their benefit and solving problems on their own.
Here are some common challenges employers run into when relying on software-only solutions:
- Missed compliance rules: ICHRAs must follow strict IRS and other federal guidelines. While good ICHRA software may list any necessary regulations, it often won’t provide proactive guidance or ensure you design a compliant plan. A small oversight can result in costly tax penalties.
- Employee dissatisfaction: When employees feel confused about a new benefit, it reduces the value of offering an ICHRA. Dissatisfaction can spread quickly across your team, hurting retention, morale, and benefit utilization.
- Heavy administrative burden: Managing an ICHRA can be complex, especially if it’s your first time. Employers, HR leaders, and brokers may find themselves fielding constant employee questions, troubleshooting technology issues, and double-checking compliance rules, which can take significant time away from other priorities.
- Non-compliant health plans: Employees must have a qualified individual health insurance plan to participate in an ICHRA. Without proper education, employees may choose coverage that doesn’t align with their needs or isn’t eligible for an ICHRA.
- Lack of real-time problem-solving: Software may provide data and reporting. But it’s not likely to provide the caring, quick solutions needed when something serious goes wrong, like a delayed reimbursement process or an employee losing health insurance coverage.
- Poor communication: To run a successful ICHRA benefit, employees need clarity, reassurance, and resources. Software-only systems can’t replace the understanding and knowledge that comes from one-on-one customer support.
Why Remodel Health is the best option for hands-on, white-glove ICHRA administration
At Remodel Health, we know that offering an ICHRA isn’t just about software. Employers and brokers need a team they can rely on to guide them through their health benefits every step of the way. Our full-service approach combines powerful software with personalized, expert-driven support. Below, we review some key features you can expect from partnering with us.
Dedicated team of experts
At Remodel Health, our team acts as trusted guides, educators, and advocates. We help employees and employers maximize their ICHRA benefits with knowledgeable, timely, and compassionate support from setup through renewal.
Here’s who you can rely on to provide white-glove service every step of the way:
- Our launch coordinators are your primary contact during benefit implementation. Essentially, they guide companies through employee onboarding and enrollment. They help benefit admins and employees understand the transition from a group health insurance plan to an ICHRA, ensuring a smooth launch.
- Our in-house benefits advisors are one-on-one specialists who assist an organization’s staff in navigating the individual health insurance market. They help participating employees compare, shop, and enroll in a health plan that meets their needs.
- Our customer success team is available year-round to answer questions, troubleshoot issues, and maintain a seamless ICHRA experience for employers and employees.
- Our account managers work with brokers and employers from the start, focusing on long-term goals, compliance, and renewals. They provide guidance on strategy and financial projections to keep your health benefit solution effective and sustainable.
Personalized benefit design
Instead of just walking through the steps on a digital platform, we personally collaborate with organizations to build an ICHRA plan that fits their goals and their employees’ needs. We provide resources and personalized analyses based on the organization’s current employee census, benefits summary, and annual spending. Next, we create a tailored proposal that compares their existing coverage to ICHRA options, showing costs, savings, and value.
Then we get into the other details. We guide you through selecting an effective date, choosing contribution amounts, determining employee classes, and helping staff switch from group coverage to individual health insurance. With assistance from our team of experts, you’ll be on your way toward offering a compliant and budget-friendly benefit.
In-house onboarding support
Remodel Health makes ICHRA onboarding a structured and informative experience. We send out welcome messages and custom emails introducing employees to the benefit. We also provide virtual or in-person education sessions, comprehensive ICHRA guides, and one-on-one employee assistance from a launch coordinator. With these resources, employees will feel confident that we answered all their questions.
Additionally, employers benefit from access to a centralized platform during enrollment. Plan administrators can track enrollment progress, monitor who has completed setup, and see which employees still need to take action. Our platform houses all implementation tasks, giving you a clear overview throughout the onboarding process.
If you need extra help during setup — such as adding or removing employees, setting up insurance premium payment methods, or understanding subscription fees — our benefits advisors and customer success team are ready to assist.
Hands-on health insurance shopping
Selecting the right health plan can feel daunting. But with our decision-support tools and recommended plan features, 82% of employees on the platform make informed selections, resulting in higher benefit satisfaction. Sometimes, employees need extra help understanding individual health insurance. In that case, employees can contact our in-house benefits advisors.
Our licensed advisors provide personalized support, helping members compare plan options and understand coverage details. Employees can self-select a health plan using our intuitive tools or schedule a one-on-one consultation with an advisor.
Suppose you have employees approaching Medicare eligibility. In that case, our in-house enrollment specialists will proactively reach out and offer our assistance. We ensure they have the correct coverage and receive the necessary documentation for CMS reporting and employee notices.
Support doesn’t end after the Open Enrollment season. At Remodel Health, our team is available to:
- Review health plan benefits.
- Coordinate with providers or insurance carriers for medical authorizations.
- Assist with access to prescription drugs or healthcare specialists.
- Help manage complex medical claims.
Whether it’s Open Enrollment or your or your client’s employees triggered a special enrollment period mid-year, our licensed advisors ensure your staff feels supported no matter the situation.
Premium payments with accuracy and protection
With Remodel Health, employers don’t need to manually reimburse employees for their health insurance premiums. Instead, employers simply deposit their ICHRA contributions into a secure savings account. We make insurance premium payments stress-free by combining advanced technology with hands-on support.
Our innovative AutoPay system automatically processes your employees’ premiums with over 99% accuracy, significantly reducing errors or missed payments. Our platform also includes overdraft protection through FDIC-insured employee accounts, guaranteeing your staff’s health insurance stays active even if funds drop unexpectedly low.
So, what happens if an employee’s premiums are more than their monthly allowance? If they have an off-exchange plan, employers can facilitate pre-tax withholding for the excess, much like a group plan.
With our dedicated support team and reliable software, we maintain a 100% success rate for premium payments with appointed carriers. Employers and employees can trust that insurance premiums are processed promptly and coverage stays uninterrupted, providing peace of mind.
Plus, direct payroll integrations are available from ADP and Paylocity, and more than 200 other payroll and HRIS integrations are supported.
Robust compliance management
Maintaining ICHRA compliance with IRS and other federal regulations can be tricky. But Remodel Health simplifies the process. From plan design to ongoing benefits administration, our team manages the heavy compliance lifting so you or your clients don’t have to worry.
Our ICHRA+® administration solution generates all necessary legal materials, including the ICHRA notice, summary of benefits and coverage (SBC), Medicare disclosures, and summary plan description (SPD). We also provide data and guidance for filing Forms 1094 and 1095. Additionally, we help calculate your PCORI fees and provide filled-out Form 720s and fulfill other tax and reporting requirements, reducing your overall administrative workload.
ICHRA compliance is an ongoing task. To keep you on track, we offer quarterly check-ins, proactive updates on regulatory changes, and guidance for easy renewals. Our strong dedication to compliance is a primary reason why 95% of our customers continue partnering with us year after year to provide their ICHRA benefits.
Conclusion
A successful ICHRA program takes more than a good software program. It requires the proper blend of technology, a skilled team, and personalized care. Without hands-on support, employers risk compliance errors, frustrated employees, and administrative headaches. But with the right partner, you can offer a cost-effective health benefit that delivers flexibility and employee satisfaction.
Remodel Health provides the white-glove support employers and brokers need to administer a compliant ICHRAs that their workforce will love. Ready to see how full-service ICHRA benefits administration can work for you? Book a call with us today!