While an ICHRA (Individual Coverage Health Reimbursement Arrangement) may appear straightforward on the surface, it conceals a layer of complexity that can be daunting for those unfamiliar with its intricacies. From regulatory compliance to the nuances of plan design and employee education, implementing ICHRA effectively requires deep expertise and careful navigation of potential challenges—and that’s where Remodel Health can help.
Complexity Deep Dive: ICHRA Setup and Compliance
Setting up an ICHRA involves navigating various regulatory requirements to ensure compliance with IRS rules and federal guidelines. From contribution rules to affordability calculations, many complexities must be managed accurately to avoid potential penalties.
Classifying Employee Contributions
Employers can offer different contribution amounts based on employee classes, but maintaining compliance with classification rules can take time and effort. We guide you through the process, ensuring contributions are properly categorized while adhering to all regulations.
Calculating Affordability
Ensuring that your ICHRA offerings meet IRS affordability thresholds is crucial to avoid penalties. We handle your affordability calculations, ensuring your plan complies with federal requirements.
COBRA Administration
Administering COBRA with ICHRA presents additional complexities, particularly around eligibility and compliance. Our team provides the expertise needed to navigate COBRA alongside your ICHRA offerings, ensuring seamless administration and compliance.
Complexity Deep Dive: Change Management
Transitioning to an ICHRA model involves significant change for employers and employees, requiring careful management during the shift. Without proper planning and support, this transition can lead to confusion, disengagement, or mistakes that could impact the success of the ICHRA offering.
Employee Education
One of the biggest challenges in ICHRA transitions is educating employees on the new system and how it impacts their benefits. We provide tailored employee education programs to ensure your workforce understands their options, how to navigate the new model, and the value it offers.
Plan Comparison and Selection
With many health plans available, employees may feel overwhelmed when choosing the right coverage. We simplify the process by offering one-on-one shopping sessions that help employees efficiently compare plans and select the best option for their unique needs.
Carrier Relations
Managing relationships with multiple carriers can be complex, especially when ensuring all parties are aligned and premiums are processed smoothly. Our team handles carrier communications and negotiations on your behalf, ensuring seamless coordination between carriers, employers, and employees.
Complexity Deep Dive: Administrative Burden
Managing the administrative aspects of an ICHRA can be a heavy lift for employers. There are complexities surrounding payroll integration, carrier payments, and ongoing support. These tasks can become overwhelming and error-prone without the right tools and expertise.
Integration with Payroll and HRIS Systems
Syncing your ICHRA with existing payroll and HRIS systems can be complex, requiring precise alignment to ensure accurate contributions and deductions. Remodel Health simplifies this process by integrating with more than 200 popular platforms like ADP and Paylocity, making administration seamless.
Direct Carrier Payments
Managing multiple payments to various health insurance carriers adds another layer of complexity for employers. We take this off your plate by handling direct payments to carriers, ensuring that premiums are paid accurately and on time.
Year-Round Support
Administrative burdens don’t end after implementation. Employers and employees need ongoing support throughout the year to handle issues, answer questions, and make adjustments as needed. Remodel Health provides best-in-class, year-round support to ensure smooth administration long after the initial setup.
Conclusion
While the challenges of implementing and managing ICHRA can seem overwhelming, they don’t have to be. Remodel Health rises to the challenge by offering expert guidance, comprehensive support, and tailored solutions that simplify the process for employers and employees. From compliance and change management to administrative burdens, we handle the complexities so you can focus on what matters most—providing quality benefits and empowering your workforce. With Remodel Health by your side, navigating the intricacies of ICHRA becomes a smooth, rewarding experience.
Contact our expert team today to learn more.
