With the anticipation of the January 2020 launch of the new Health Reimbursement Arrangement (HRA) option, called the Individual Coverage Health Reimbursement Arrangement (ICHRA), it is important to take a look at its precursor — the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).
In February 2019, the Society for Human Resource Management (SHRM) shared data from 2018, which disclosed information from the National Business Group on Health. Statistics showed the average annual health plan premium for employer-based family coverage had risen 5% to $19,616 and 3% for single coverage, for a total amount of $6,896.
Such dramatic increases in healthcare costs make it challenging for employers and employees to manage, but it is vital that both do so to maintain good health for each individual and for the business itself.
Since the challenge has become so great over the past few decades, HRA plans offer dutiful employers new ways to provide health insurance benefits to their employees.