Small employer in and around the Fort Wayne area are always seeking ways to save money, yet still attract good, quality employees. Health Insurance and other benefits has become one of the #1 “selling” points when trying to recruit top-notch candidates. With the changes that Healthcare Reform brought about, many small employers were forced to drop their group health plans.
Recent changes in the laws is providing a new option for small employers in Fort Wayne, New Haven, Columbia City, Angola, Auburn, Huntington, and neighboring areas, who cannot afford to sponsor a group health plan. There is a hitch in that wagon that they need to communicate to their employees, however.
Under the new ICHRA (Individual Coverage HRA) guidelines, small employers (defined as having 50 or fewer employees on payroll) are now permitted to reimburse employees for the cost of Individual Health Insurance premium and out-of-pocket expenses on a tax-free basis. This means that in lieu of sponsoring a Group Health plan, small employers can now subsidize premiums for their employees through this ICHRA arrangement. Tax free money for the employee, and a business expense write-off for the employer. Employees simply need to provide proof that they have and Individual Health Insurance policy and the applicable premium and/or claims expense.
What’s the hitch? Well, the biggest that I see is that the employee will have to decide whether they want to receive the reimbursement from the employer, OR take any Advanced Premium Tax Credit (APTC) they may qualify for. They cannot receive both. By opting to participate in the employer sponsored ICHRA, the employee may actually have to pay more for coverage for themselves and/or family.
Small employers in Fort Wayne, New Haven, Auburn, Angola, Huntington, Columbia City and surrounding areas who are considering an ICHRA should give us a call to discuss the pros and cons of either option.
Contact Michelle Walters at (260) 484-7010 or by email at firstname.lastname@example.org