New Study: 89% of Employers Considering ICHRAs for Health Benefits Solution Over Next Three Years
Despite strong interest and high adoption rates of ICHRA, some barriers exist for employers.
MINNEAPOLIS, Sept. 14, 2023 /PRNewswire/ -- Gravie, one of the nation's fastest growing health benefits innovators, is releasing a new study in partnership with Wakefield Research that highlights a growing interest in Individual Coverage Healthcare Reimbursements Arrangements (ICHRAs) among employers, even though some barriers are prohibiting them from offering this type of solution today.
The survey, conducted in August 2023, polled 500 health benefits decision-makers at companies with 1-1,000 employees who don't currently offer ICHRAs, to better understand their awareness, consideration and perceptions of this tax-advantaged health benefits option for their employees.
Before taking the survey, approximately half (49%) of the respondents had not heard of ICHRA, but most showed interest in learning more. Interestingly, respondents from midsize and large companies expressed the most interest in learning about ICHRA options (92% among those with 50-299 employees and 94% among those with 300-1,000 employees).
"We know companies of all sizes can benefit from adopting an ICHRA to support their employees' unique health and wellness needs," said Gravie ICHRA General Manager Andrew Reeves. "We've been helping employers administer ICHRAs and similar marketplace solutions for almost a decade, and the model is finally catching fire as an increasing number of businesses are turning to ICHRAs and looking for help navigating the individual market, managing contribution strategies and meeting compliance requirements."
Growing Interest and Adoption
According to the HRA Council, adoption of ICHRAs has more than tripled since they were introduced in 2020. Despite highlighting the need for more overall awareness and education, Gravie's survey also indicated that the adoption rate for ICHRAs isn't likely to slow down anytime soon. With medical trends increasing, the ability of employers to set a defined contribution towards their employees' health benefits is a major part of the appeal.
As many as 89% of benefits decision-makers, who don't currently offer them, are considering ICHRAs for their employees over the next three years. Others are looking further out, with 87% of respondents agreeing that ICHRA could be a long-term fit for their company.
Barriers to Overcome
While more benefits leaders are giving ICHRA a strong look as a potential new or expanded health benefits solution, many are stretched for time and resources. On average, they are spending nine hours per week managing health benefits for their company – and for nearly 3 in 4 (71%), managing health insurance is one of the most difficult parts of their job.
Benefits managers have demanding jobs and over 80% of respondents consider each of these factors a barrier to embracing ICHRAs:
- Helping employees navigate the marketplace.
- Managing employee contribution strategies.
- Providing ongoing support to answer employee questions.
- Staying compliant and up to date on regulatory changes.
Seeking New Solutions
Many employers rely heavily on brokers to bring them creative benefits ideas and, now more than ever, employers are seeking new options. More than 4 in 5 employers (86%) would be interested in their advisor bringing them more innovative, non-traditional solutions like ICHRA. And 83% would be more willing to offer an ICHRA if they had support from a dedicated vendor partner.
"For employers who are looking for alternatives to group health plans but that still allow them to contribute to their employees' coverage expenses, ICHRAs are emerging as an incredibly appealing option," said Reeves. "With the right partner working in concert with their advisors to manage compliance, contribution strategies, and marketplace navigation, ICHRAs really are meeting the needs of both employers and their employees."
For more information about Gravie's research or ICHRA solution, visit www.gravie.com/ichra.
About Gravie
Gravie has been and continues to be at the forefront of driving change and improving the healthcare industry by creating innovative employer-sponsored health benefit solutions that put consumers first. Comfort®, Gravie's flagship product, is the nation's first-of-its-kind health plan that provides first-dollar, 100% coverage on most common healthcare services, at a cost comparable to traditional group health plans. Learn more about Gravie at www.gravie.com.
Research Methodology
The survey was conducted online by Wakefield Research among 500 U.S. insurance benefits decision-makers at companies of 1 to 1,000 employees, between August 17-23, 2023. Qualified respondents offered a group health benefit but not an ICHRA product and are not a current Gravie client. Oversamples were conducted to increase the total sample size to 100 for each of the following segments: respondents working at companies of 50 to 299 employees; respondents working at companies of 300 to 1,000 employees.
Media contact
Jeff Smokler
Gravie
410.370.1266
Jeff.smokler@gravie.com
SOURCE Gravie
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