ICHRA benefits trend covers higher percentage of premiums than traditional group plans with more options

Market research shows large employers as fastest growing segment for bipartisan individual coverage HRA

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Nov 01, 2021, 10:03 ET

DALLAS, Nov. 1, 2021 /PRNewswire/ -- Take Command, a tech-enabled service that offers HRA administration, unveiled their proprietary ICHRA 10 , the latest market research based on client data to demonstrate the continued success and momentum of the bipartisan benefits solution in its second year. Individual coverage HRAs (ICHRAs) are a new way of doing health insurance, where employers reimburse employees with pre-tax dollars and employees choose the health insurance plan that works best for them.

"The pandemic has fundamentally changed the way we work. It's contributed to a rise of hard-to-insure remote workers and a growing need for recruitment tools for service and hospitality workers," shares Jack Hooper, CEO, Take Command. "Paired with the ongoing challenges of insuring part-time and hourly employees, and annual group plan renewal hikes, the stage is set for ICHRA to continue to thrive."

Key findings include:

Large employers (50 to 1000 employees) represent the fastest growing segment for ICHRA, with a 210% rise in enrollments over last year.
Average ICHRA covers 147% of lowest cost bronze plans and 122% of lowest cost silver compared to group plans that only cover 84% of single plan premiums (and 35% of small groups cover less than half with the rest coming out of employees' paychecks.)
More ICHRAs per capita in CO than any other state.
The average age of employees on our platform is 38 (median is 35), meaning healthier and less costly to ensure vs. the average shopper on Healthcare.gov, who is 55 to 64.
50% enrolled in a plan with a deductible less than $2,850. The average deductible on a small group plan is $3,140.
80% of our small business clients are net new to benefits, expanding coverage for workers.
Premiums have stabilized (along with MLRs), 30 insurers entered new states, 61 insurers expanded service areas, giving employees an average of 5 insurers per state to choose from.
Growing number of geographies have IFP rates lower than SG, meaning employers' benefits spend can stretch further with an ICHRA.

"Companies of all sizes are coming on board—small companies hoping to help employees, larger ones with medically underwritten group plans looking to satisfy the employer mandate, or 1000+ employee companies that are self-funded with a multi-state footprint," adds Hooper. "ICHRA wins across the spectrum for its optimized approach to risk de-management, choice, and flexibility."

About Take Command
Take Command is on a mission to accelerate the adoption of the reimbursement model of health insurance to help create a consumer-centric healthcare system. Take Command is a proud inaugural member of the HRA Council, a recognized leader in QSEHRA administration for small employers, launched the first-to-market Individual Coverage HRA platform, and is the only HRA administrator to also offer full service, in-house individual enrollment support.

Contact:
Amy Skinner
Take Command
214.224.0990 x 132
[email protected]

SOURCE Take Command