In keeping with the KFF 2023 Employer Well being Advantages Survey, 83% of companies with 10 to 199 staff supply well being advantages to a few of their staff, whereas solely 42% of corporations with three to 9 staff achieve this.

The scenario is even worse for nannies, house well being aides and different home staff: In 2018, solely 19% had employer-provided medical health insurance advantages, in accordance with the Financial Coverage Institute.

This vital hole in protection has employers (and staff) looking for new choices.

One answer that’s gaining traction at this time is the person protection healthcare reimbursement association, or ICHRA.

This mannequin permits employers to make tax-advantaged contributions to staff who enroll in a well being plan by the person market.

Since first turning into accessible to employers in January 2020, ICHRAs have seen a surge in adoption amongst employers.

Employer ICHRA Notion Knowledge

As ThinkAdvisor beforehand coated, ICHRAs have been gaining steam, notably in states like New Jersey, the place particular person plan premiums match or are decrease than small group plans.

Presently, ICHRA is extra aggressive on price with small group plans in simply over half of all U.S. states.

To raised perceive employers’ consciousness, curiosity and issues associated to ICHRA, Gravie not too long ago partnered with Wakefield Analysis to conduct a nationwide employer survey of 500 well being advantages decision-makers who don’t presently supply ICHRA.

Whereas the examine confirmed favorable curiosity in ICHRA amongst employers, it additionally recognized some obstacles holding many again from providing this answer at this time.

Survey Particulars

Beneath are key findings that monetary professionals can contemplate when serving to shoppers navigate their well being advantages bills.

1. The ICHRA is projected to develop as a well being advantages answer.

As many as 89% of advantages decision-makers are contemplating well being advantages by an ICHRA for his or her staff within the subsequent three years.

Moreover, 87% agree that an ICHRA could also be a strategic, long-term match for giving their staff the flexibleness to decide on a person well being plan that works finest for them.

With the anticipated improve in ICHRA enrollment by state market choices, monetary professionals might help shoppers construct a complete advantages technique that aligns with their monetary plans.

At Gravie, we see shoppers of all sizes providing our ICHRA answer alongside our small group well being plan.

For some shoppers, an ICHRA may be a short-term ramp to a bunch plan, whereas for others, this mannequin provides a sustainable technique for the long run — and never only for small and midsize teams.