Every year, employers face rising health insurance premiums while employees are left choosing between the same handful of plans that may not fit their healthcare needs or their budget. If the traditional group insurance model keeps producing the same results, perhaps it’s time to explore a different approach.
In this episode of the Bill of Health Podcast, presented by Core 360 Benefits Group, I’m joined by Mike Markland of Atma to discuss Individual Coverage Health Reimbursement Arrangements (ICHRA), also referred to as CHOICE Arrangements, and how they are changing the way businesses offer employee health benefits.
Rather than purchasing a one-size-fits-all group health plan, an ICHRA allows employers to establish a defined contribution that employees can use to purchase qualifying individual health insurance. This gives employers greater control over their benefits budget while allowing employees to choose coverage based on their own health, financial situation and preferences.
We also explore how ICHRA can fit into a broader employee benefits strategy, including direct primary care, medical cost sharing and supplemental benefits, along with how companies like Atma help manage enrollment, administration and compliance.
In This Episode of Bill of Health:
Mike and I discuss:
- What an ICHRA is and how CHOICE Arrangements work
- Why employers are exploring alternatives to traditional group health insurance
- How defined contributions can help businesses manage their benefits budgets
- Why employee choice can lead to more personalized healthcare decisions
- How Atma simplifies enrollment, payments and administrative responsibilities
- Where direct primary care and medical cost sharing fit into a broader benefits strategy
- What employers and employees should consider before transitioning to an ICHRA
What Is an ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to contribute a defined amount of money toward an employee’s qualifying individual health insurance rather than purchasing one group policy for everyone.
Instead of being limited to a handful of plans selected by their employer, employees can shop for individual coverage that better reflects their healthcare needs. The arrangement also provides tax advantages when established and administered according to applicable requirements.
More Choice for Employees, More Budget Control for Employers
Traditional group health insurance requires employers to select coverage for an entire workforce, even though employees may have very different healthcare needs.
ICHRA changes that relationship by allowing employers to establish their contribution while giving employees more control over the coverage they purchase.
The transition also doesn’t mean employees are left to figure everything out themselves. Education, plan comparisons and enrollment assistance remain important parts of helping people make informed choices.
Simplifying Benefits Administration
Managing individual insurance policies for an entire workforce might sound more complicated than administering a traditional group plan, but technology can help reduce that workload.
Atma supports ICHRA implementation through enrollment assistance, premium payment coordination, reporting and administrative services. Rather than requiring employers to manage numerous individual insurance payments, the process is designed to function much like the familiar group benefits model.
Building a More Personalized Benefits Package
ICHRA can also serve as the starting point for a broader discussion about employee benefits.
Depending on an employee’s needs and eligibility, employers and benefit advisors may explore additional options such as direct primary care, supplemental benefits and medical cost sharing.
These options are not interchangeable with traditional insurance, but they illustrate why a personalized benefits strategy deserves consideration instead of automatically renewing the same plan each year.
Jargon Jar: What Is Reimbursement?
A Health Reimbursement Arrangement (HRA) is an employer-funded benefit that reimburses employees for eligible healthcare expenses under established rules.
Traditional reimbursement models can involve collecting receipts, submitting documentation and waiting for expenses to be processed.
With a properly administered ICHRA, much of that work can be handled through technology and a third-party administrator, including qualifying premium payments, enrollment verification and required documentation.
About Mike Markland
Mike Markland is the founder and CEO of Atma PMF, an employee benefits organization specializing in ICHRA solutions and alternative benefits strategies. His background includes payroll, professional employer organizations (PEOs) and traditional employee benefits.
Connect with Mike:
LinkedIn: Mike Markland
Company: Atma PMF
For direct inquiries, contact Mike through his LinkedIn profile. A complete public direct email address was not independently verified.
Learn More
To learn more about individual health insurance options, Medicare planning and healthcare consumer strategies—or to schedule a consultation—visit:
www.core360benefitsgroup.com
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Disclaimer
This podcast is provided for educational purposes only and should not be considered legal, tax, investment or insurance advice. Individual circumstances vary, and listeners should consult qualified professionals regarding their specific healthcare and financial situations. Opinions expressed by the host and guests do not necessarily reflect the views of any insurance carrier or affiliated organization.
Chapters
00:00 Why Traditional Employee Benefits Need a Disruptor
01:21 Introducing ICHRA and CHOICE Arrangements
03:05 Meet Mike Markland of Atma
05:15 What Is an ICHRA and How Does It Work?
08:15 How Atma Handles Enrollment and Administration
10:13 What ICHRA Means for Employers and Employees
15:45 Addressing Compliance and Administrative Concerns
17:48 Combining ICHRA With Other Healthcare Alternatives
24:03 Jargon Jar: Understanding Reimbursement
25:43 Five for Fighting With Mike Markland
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