Growing business interest in a new type of health-care arrangement is expected to boost Obamacare enrollment, lower costs, and ensure some employees stay covered during the pandemic, state exchange officials say.
Individual coverage health reimbursement arrangements (ICHRAs) allow employers to reimburse their workers tax-free for individual health insurance that they purchase on the exchanges. The Trump administration created ICHRAs through regulation in an effort to provide cheaper, alternative health options for consumers.
Businesses are finding that they can save themselves and their employees money by using ICHRAs to fund individual plans in the Affordable Care Act market, Kevin Patterson, CEO of Connect for Health Colorado, the state’s health insurance marketplace, said. That in turn is expected to lead to more ACA enrollment through the exchanges, rather than in insurance plans that companies have traditionally funded.