Gravie, one of the nation’s fastest growing health benefits innovators, is releasing a new study in partnership with Wakefield Research that highlights a growing interest in Individual Coverage Healthcare Reimbursements Arrangements (ICHRAs) among employers, even though some barriers are prohibiting them from offering this type of solution today.
The survey, conducted in August 2023, polled 500 health benefits decision-makers at companies with 1-1,000 employees who don’t currently offer ICHRAs, to better understand their awareness, consideration and perceptions of this tax-advantaged health benefits option for their employees.
Before taking the survey, approximately half (49%) of the respondents had not heard of ICHRA, but most showed interest in learning more. Interestingly, respondents from midsize and large companies expressed the most interest in learning about ICHRA options (92% among those with 50-299 employees and 94% among those with 300-1,000 employees).
“We know companies of all sizes can benefit from adopting an ICHRA to support their employees’ unique health and wellness needs,” said Gravie ICHRA General Manager Andrew Reeves. “We’ve been helping employers administer ICHRAs and similar marketplace solutions for almost a decade, and the model is finally catching fire as an increasing number of businesses are turning to ICHRAs and looking for help navigating the individual market, managing contribution strategies and meeting compliance requirements.”
Growing Interest and Adoption
According to the HRA Council, adoption of ICHRAs has more than tripled since they were introduced in 2020. Despite highlighting the need for more overall awareness and education, Gravie’s survey also indicated that the adoption rate for ICHRAs isn’t likely to slow down anytime soon. With medical trends increasing, the ability of employers to set a defined contribution towards their employees’ health benefits is a major part of the appeal.
As many as 89% of benefits…
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