Employer-based health plans are the largest source of coverage in the United States – covering almost 159 million people last year. According to the Kaiser Family Foundation (KFF), just over half of employers offer health coverage, but that is skewed toward large companies: 99% of businesses with at least 200 employees have health plans compared to 51% of those with 10-199 employees, and 39% of those with 3-9 employees. As small-business insurance premiums soar and the exchanges grow more competitive, ICHRA’s (individual coverage health reimbursement arrangements) are getting more consideration as an alternative to group coverage. Through ICHRA’s, companies can offer workers tax-exempt subsidies for exchange policies instead of providing insurance themselves. Advocates of ICHRA’s contend they have the potential to revolutionize health benefits by giving employees more choices. The coverage also shifts the financial and administrative burden from companies to individuals. The market is seeing a surge of new ICHRA companies that have been formed lately.
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