More than one-third of employers with awareness of individual coverage health reimbursement arrangements are actively preparing for or evaluating them, according to a July 28 survey.
The Employee Benefit Research Institute and Morgan Health, a JPMorganChase division, conducted the survey, channeling responses from 984 employers. The Blue Cross Blue Shield Association, Centene’s Ambetter Health and Oscar Health were among the survey’s sponsors.
Despite interest in ICHRA, the survey showed awareness gaps persist.
Here are eight takeaways from the survey:
1. One-third of businesses already offering health benefits reported likely ICHRA adoption in the upcoming two years.
2. Employers with at least 100 employees had the strongest ICHRA interest. This was particularly pronounced among businesses with 500 to 9,999 employees.
3. Out of large employers with health plans, 85% are concerned individual market premiums could be unaffordable for some workers. Out of small employers with health plans, 81% share that worry.
4. Employers reported access to comparable quality of network and choice as group plans would be the biggest lever to increase employer interest in ICHRA, with 85% of employers indicating that would impact decisions “a lot” or “some.” Tax credits would also motivate employer adoption.
5. Seventy-seven percent of employers said a broker or consultant recommendation would push them toward ICHRA, as well. Peer adoption could also influence their decisions, according to 76% of the surveyed employers.
6. Of the small businesses not currently offering health benefits, one-quarter indicated leaning toward ICHRA rather than a traditional group plan, but 55% were unaware of ICHRA as an option.
7. Employee preferences for group plans and uncertainty around ICHRA were among the top reasons businesses hesitate to adopt ICHRA.
8. In the survey, between 38% and 51% of employers incorrectly conflated ICHRA with group health plans.
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