7 myths about ICHRA health benefits...busted

HR{preneur}® by ADP®

ICHRAs (individual coverage health reimbursement arrangements) are a relatively new type of health plan that allows employers to offer their employees a tax-free allowance to purchase benefits. While ICHRAs are growing in popularity, many businesses are hazy on the details. Unfortunately, myths and misperceptions about ICHRA could lead a business to dismiss a benefits option that may be right for them. Listen as we debunk:

• [2:46] Myth #1: The marketplace has challenges — ICHRA can’t be good insurance.
• [4:30] Myth #2: A business with no HR department doesn’t have access to enough resources to set up an ICHRA.
• [5:48] Myth #3: It’d be easy for most businesses to administer an ICHRA on their own.
• [7:01] Myth #4: Old HRA models didn’t fit the business before; new ones are probably no different.
• [8:17] Myth #5: Employees will be overwhelmed by the choices in the insurance marketplace.
• [10:25] Myth #6: Employees won’t spend their benefits allowance on health-related expenses.
• [12:01] Myth #7: Switching to an ICHRA will be a pain.

This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This is informational only and not intended as tax or legal advice. Should you have questions you should consult with a tax or legal advisor. This content is current as of the published date.

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