The High-Cost Claim You Never Met

For nearly five years, The ICHRA Shop has conducted thousands of personal benefits enrollment meetings with employees embarking on their ICHRA journey for the first time. We hear what HR does not hear, as we keep all conversations private. But wow, do we learn about the unknown risk that the employer would have grappled with, if they did not move to ICHRA.

Employers are worried about "unknown risk", and this is top of mind for many employers, considering ICHRA versus self-insurance.

Our first tagline for The ICHRA Shop was: "You did not start your business to be in the insurance business, did you?"

This is holds true five years later as the rising cost of self-insurance, versus a more, stable and predictable way to manage cost with ICHRA.

If you are an employer considering self-insurance versus ICHRA, think of this scenario if they had not moved to ICHRA.

HR just wants this employee to contribute to the company, but they have yet to learn of the cost they just added to the bottom line.

The employee enrolls in their benefits and adds their family, just like many employees do yearly. The difference is that one of the dependents has major claims, perhaps being eligible for SSN or Medicaid.

Employers are stepping into the abyss when they hire employees to add to their self-insured medical plan. They have no idea about the medical claims or the heavy Rx user they just hired. There is no way for an employer to stop this risk from hitting their self-insured claims report next month

So why is ICHRA a safer bet? It offers Defined Contribution, No Underwriting and Risk Adjustment. Employees can choose the best carriers and plans to meet their medical needs and have more flexibility in providers and Rx.

This week, we found a client with nearly 2,000 employees asking their broker: "In the 50+ pages of our renewal, you never mentioned ICHRA. - Why?"

In today's competitive market, where employers are using employee benefits to recruit and retain, they have quietly become partly an insurance company. They are managing #risk when they should be managing the #bottom-line cost of the benefits plan.

There is no easier way for a CFO to manage risk than Defined Contribution Health Care. The 401k style of benefits is #ICHRA.

Catch the wave, and don't get crushed by another big, self-insured renewal increase this year!

We do Carve-outs and Full Take-over of ICHRA for any size employer and work with employers and their consultants. Check us out: www.ICHRA.shop

Brad O'Neil is the Co-founder and managing partner of www.ICHRA.shop . Known as The Wizard of ICHRA, and a leading expert in ICHRA, HRA's and benefits compliance, Brad consults with brokers, advisors, employers, carriers and investors, discussing the growing ICHRA industry. With a focus on large and jumbo employers, Brad and his team at The ICHRA Shop consult on funding strategies and assist brokers and employers in selecting the best fit for ICHRA administration. The ICHRA Shop provides complementary services and enrollment support to any ICHRA solution or tools and resources for employers to self-administer ICHRA.