Market Analysis: Where the Individual Coverage HRA is likely to take off in 2020

DALLAS, Dec. 12, 2019 /PRNewswire/ -- Take Command Health, a disruptor in the benefits market, released a ranking of the top 50 major metros most likely to successfully adapt the Individual Coverage HRA (ICHRA), a new benefits model available for the first time January 1^st.  Employers in some cities face more conducive conditions that make ICHRAs a better deal for their employees and the newly released ranking sheds light on where this new trend will take hold.

"With help from VeriCred, we looked at market conditions across the country that would set the ICHRA up for success," shares Take Command Health CEO, Jack Hooper. "The new reimbursement strategy isn't for everyone, but business owners in cities with healthy individual markets should take a close look at this new way of doing health insurance."

The new ranking for ICHRA-ready cities named Minneapolis, Los Angeles, Providence, Boston and Philadelphia at the top the list. The analysis compared the top 50 metro areas in the country for individual plan affordability, individual premium cost relative to the cost of a small group plan, availability of a broader set of plans, insurer competition, and premium trajectories.

"An employer-provided health benefits revolution is coming—and these cities are poised to take the lead," adds Hooper.

With an ICHRA, the employer decides how much money to contribute each month, provides their employees with standard information about how the HRA works, and outsources some administrative functions like verifying coverage. Then, the employer has predictable costs for their employees' coverage, can remove the hassle of selecting and managing a group plan, and is effectively out of the health insurance business. The employee can then choose the individual plan that fits their needs.

While this health insurance revolution won't happen overnight, HHS predicts that an estimated 11 million workers will use this HRA to purchase a plan in the individual market in the coming years—a critical factor for creating a stronger market.

About Take Command Health
Take Command Health launched five years ago with the goal of bringing awareness, advocacy, and transparency to the confusing world of health insurance. It's now at the forefront of this issue, a recognized leader in QSEHRA administration and a loud proponent of the new Individual Coverage HRA, with customers in every state.

Contact:
Amy Skinner
Take Command Health
405.919.0845
[email protected]

SOURCE Take Command Health

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https://www.takecommandhealth.com/