
ICHRAs: A sustainable alternative
December 19, 2024
Employer-sponsored health plans are seeing double digit rate increases driven by postponed medical procedures, rising labor costs, modest investment returns, Medicare/Medicaid underpayments, and medical inflation. These pressures are pushing costs to unsustainable levels, creating challenges for employers and employees alike. To address rising costs, ICHRAs offer a sustainable alternative by allowing employers to provide a fixed monthly allowance for employees to purchase individual health plans. However, transitioning to an ICHRA requires careful planning. Employers must assess plan availability, administrative logistics, and employee support systems to ensure smooth implementation. Learn more in an article from Parker, Smith & Feek Vice President and Account Executive Jim Gregson featured in the Puget Sound Business Journal.
The views and opinions expressed within are those of the author(s) and do not necessarily reflect the official policy or position of Parker, Smith & Feek. While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it.
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