Employers are using ICHRAs to shift risk from unpredictable group plans to the broader individual market. "This approach allows employers to reduce exposure to high-cost claims while staying compliant with ACA requirements," says this benefits tech founder.
HR leaders are already walking a fine line between cost control and benefit competitiveness. "The loss of subsidies doesn't just affect individuals; it reverberates through the employer system," according to Ben Light from benefits tech platform Zorro.
Soaring healthcare costs are affecting organizations across industries and sizes—and small to medium-sized businesses are being particularly hard-hit, found a new study. How are they responding?
"Running a DC plan can be challenging, but when done correctly, the difference it can make to participants is truly life changing," the Mercer report states.
Careful plan design, managing high-cost categories and leveraging alternative approaches can help employers contain costs while avoiding wholesale disruptions and maintaining overall employee engagement.
