Part 3/6:
The Individual Coverage Health Reimbursement Arrangement (ICHRA) is a policy that went into effect in 2020, allowing employers to provide employees with a fixed monthly allowance to purchase their own individual health insurance plans. This model aims to give employees more choice and control over their healthcare, while also potentially reducing costs for employers.
ICHRA represents a shift from the traditional "defined benefit" model of employer-sponsored insurance to a "defined contribution" approach, similar to the evolution of 401(k) retirement plans. By empowering employees to choose their own plans, ICHRA seeks to address the limitations of the one-size-fits-all group plans that have dominated the employer-sponsored market.
The Fintech Approach to ICHRA
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