Why brokers might care about ICHRA

Why might benefits brokers and advisors be interested in ICHRA?

It’s probably not for the commission, at least not on the individual insurance. Individual plans generally pay a lower commission than group plans do.

Nevertheless, brokers are interested in ICHRA because it may be the best fit for the employer and their employees.

• For groups with an astronomical increase or rate, individual plans may be cheaper.

• State-regulated individual coverage could have key benefits for specific treatments or mandated coverage that could be missing from the group plans offered at the same price point. This is incredibly fact-specific, and a great way for a broker to show their expertise.

• Employees who change jobs during a year can do so without resetting their deductible and out-of-pocket maximums. While this may not help with retention directly, it could help with recruiting.

There are trade offs as well (I’ve explored several of them in previous posts), but ICHRA offers brokers another tool to use when evaluating the best options for their clients.