The introduction of ICHRAs into the health insurance market is the perfect opportunity to stay on top of industry trends and be of extra value to your clients by introducing them to innovative products. (Especially because prospective clients can enroll in an ICHRA plan anytime, either during open enrollment or by taking advantage of a special enrollment period.)
Nexben’s ICHRA solution is a technologically savvy product that can provide potential cost savings for employers, relief to HR administrators, and the freedom of choice to their employees.
Here’s some helpful insight for brokers into what clients you should be considering for ICHRAs:
ICHRA opportunity: Companies that have a higher risk pool
As a broker, you know that in traditional group plans employers are repeatedly dinged by a health insurance company if their employees have experienced certain catastrophic health events, like cancer or a major surgery. This inevitably leads to an increase in health insurance costs that often become a financial burden for employers and create rising premiums for employees. Last year, a broker from a top-ten firm introduced an ICHRA to a client that was overwhelmed by the rising costs of their traditional group plan. After adopting Nexben’s ICHRA solution, the projected cost-savings for the client is 46%, or about $570,000. Read more about this case study here.
ICHRA opportunity: Companies with transient employees
If you have a client in the hospitality industry or one who employs people seasonally, an ICHRA may be a great fit for their health insurance plan. An ICHRA solution provides more flexibility for the employer than a traditional group plan and allows for clients who may not traditionally offer an insurance plan for their employees to do so.
Additionally, if employees are enrolled in an ICHRA plan, they can take their individual health insurance with them when they leave, offering an attractive added benefit.
ICHRA opportunity: Small businesses with contribution concerns
Whether it’s a new business just starting out or a small business that’s financially unable to provide a large contribution to its employee’s premiums, an ICHRA can be an interesting solution. The ability to offer an ICHRA plan allows for small businesses to provide their employees with the coverage they otherwise may have been unable to provide. It also allows for small businesses to have a competitive advantage in their benefits package, which can help attract talent when compared to bigger, more established companies. You know your client portfolio better than anyone else. Consider which companies might benefit from adopting Nexben’s ICHRA solution and be the first in the industry to offer it to them. To learn more about how ICHRAs work, read our guide for brokers here.