eHealth, Inc. (NASDAQ: EHTH) (eHealth.com), a leading online private health insurance marketplace, is now offering ICHRA health insurance products and services in addition to offering traditional group health insurance plans.
With ICHRA (Individual Health Coverage Reimbursement Arrangement), corporations and business owners make premium contributions toward health plans selected by employees. Employees get to choose the coverage that best matches their health needs from a large selection of available plans. Employers determine their own contribution towards subsidizing employees’ costs.
“In regions where we offer both ICHRA and traditional group health insurance products, we’ll now be able to help employers understand which may work best for their needs,” said eHealth CEO Fran Soistman. “For employers who want to provide health insurance for employees but can’t afford a traditional group plan, the ICHRA program presents a good solution. While ICHRA can accommodate groups of any size, it may prove especially attractive to smaller businesses.”
Benefits of ICHRA for employers
As an employee benefit offering, ICHRA may help businesses attract and retain workers. It allows employers to define their own contributions, often minimizing risks and controlling costs more effectively than with group health insurance coverage.
Benefits of ICHRA for employees
Employees can select the ACA-compliant health plan that suits them and use disbursements from their employers to reduce their premiums. Premium reimbursements from employers are designed to be tax-free and not reported as taxable income. When leaving a company, employees can take their plan with them.
Source: PR Newswire
