What if you went shopping for a new car, and you were told that you had two choices: Either you could buy a large SUV with all the bells and whistles, using a 60-month loan, or you could lease an older model two-door sedan for a year. Obviously, that doesn’t work for a lot of people whose needs fall somewhere in the middle of those two options.
Choosing a health insurance plan is not all that different from shopping for a new car, yet for so long, companies have been limited in the options they could offer employees: typically, they could either offer a group plan with one specific provider, maybe with a few plan options, or nothing. Until now. Thanks to a federal ruling, there is another option: Individual Coverage Health Reimbursement Arrangements (ICHRAs).
Your health insurance, your choice
With an ICHRA, employees can shop for their very own individual health care plan using pre-tax dollars that their employer contributes—similar to how a company might contribute money toward a 401(k) portfolio. Nexben offers the ability for each individual employee to choose a plan that’s just right—and potentially save the company and its employees money in the process. How?
Let’s say you’re a 22-year old who works for a small IT company. You might want a health plan with lower monthly costs and higher deductibles, since you’re in good health but want to be covered for regular check-ups and emergencies. With Nexben’s ICHRA-solution, you can pick a plan that fits your budget and your lifestyle—limiting the cost to what your employer contributes or kicking in some of your own pre-tax dollars (if necessary) to cover the premium costs. The plan you choose may even be less expensive than staying on your parents’ plan. If you leave the company, you can take your individual health plan with you.
Employers and employees both win with Nexben. Companies of any size can offer an ICHRA. They can set their own pre-tax contribution amount for employees, who can then choose the plans that work best for their own situations. Some employees might contribute their own money to their plan, and others may not, depending on the cost of the plan each person chooses. It’s up to them. For companies looking to hire new employees, that kind of choice is a real draw. Considering the power of choice and the potential costs savings, it’s hard not to see why.
Case Study No.1:
We looked at an automotive company with 30 employees and compared the costs between the health insurance offerings in Nexben’s ICHRA marketplace to the traditional small group health plan it previously offered. We found that the average yearly cost savings for employees who chose their own plans through our ICHRA was $488 compared to bronze plans (lower monthly premiums, higher costs when needing care), $926 compared to silver plans (moderate monthly premiums, moderate costs when needing care), and $1,693 compared to gold plans (higher monthly premium, lower cost when needing care). Nexben’s ICHRA-solution also provided the employer an average annual savings of up to $38,974, depending on the plan selected by the employee—savings that can ultimately benefit everyone at the company.
Employees who are further along in their careers can also see cost savings. Having more plan choices offers more flexibility for those who need health insurance coverage for their whole family. Nexben’s ICHRA marketplace gives you the option to shop for and compare plans, selecting the one that is the best fit for your family. You can even sign up for your plan online. The amount you owe for your premium—if any—is deducted directly from your paycheck on a pre-tax basis. Health insurance has never been easier!
Case Study No. 2:
We looked at a large manufacturing company with nearly 300 eligible employees, offering Nexben’s ICHRA solution. It saved the average enrolled employee $737 a year—or 45 percent—and it saved the company $2,321 a year for each enrolled employee, nearly a 30 percent savings. Multiply those savings over several years, and it can make a real difference in a company’s bottom line, and the lives of its employees.
A simplified end-to-end ICHRA solution
While the ICHRA cost savings for both employees and employers is key, the simplicity and all-in-one technology of Nexben’s ICHRA marketplace is another win. The only end-to-end solution in the market, it allows for comparison shopping, online enrollment, and premium payment processing all within the same platform.
Your human resources representative or benefits manager will appreciate the simplified process of selecting the perfect health benefit package, rolling seamlessly into enrollment, and managing the carrier payment process all within Nexben’s platform creating efficiencies across your organization.
Find out more!
Click here to learn more about the benefits of Nexben’s ICHRA—personalized health insurance for you or your employees.