Health insurance reimbursement another benefit option available for small businesses

Decisely, through the Society of Collision Repair Specialists (SCRS) for the collision repair industry, now provides Individual Coverage Health Reimbursement Arrangement (ICHRA) benefits for employers to offer their employees, regardless of business size.

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“Unlike traditional group insurance, ICHRA allows more both employers and employees choice and personalization,” wrote Decisely in a recent blog post. “Employees select a plan that meets their individual or family needs while employers avoid the high costs and complexities of managing a group plan. ICHRA has no minimum participation requirements, allowing businesses of any size to offer health benefits, even if only a few employees choose to participate.

“Because each employee is participating in their own plan, employers avoid the financial strain of annual premium increases they might otherwise experience with a traditional group health insurance renewal.”

Through ICHRA, employers set a monthly budget to reimburse employees for some or all of the health insurance premiums they pay.

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Decisely offers a fully integrated platform that allows employees to enroll in an ICHRA, guides them in selecting individual health plans, and allows them to file reimbursement submissions.

According to healthinsurance.org, ICHRAs were created under regulations issued by the Trump administration in 2019 and became available in 2020. ICHRA adoption increased by 29% between 2023 and 2024.

“There are no limits on how much an employer can reimburse under an ICHRA (unlike a QSEHRA, which does have limits), nor are there minimum contribution requirements,” according to healthinsurance.org. “An employer cannot offer an employee a choice between a group health plan and an ICHRA; it has to be one or the other. An employer can offer both a group health plan and an ICHRA but they have to be offered to different classes of employees so that no employee has an option to choose between the group plan and the ICHRA.

“Employees who become eligible for reimbursement of premiums under an ICHRA (or QSEHRA) are eligible for a special enrollment period during which they can enroll in an individual market health plan.”

Employees must be enrolled in an individual market health plan (or Medicare) to receive the ICHRA benefit.

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The HRA Council found that 83% of the employers providing ICHRA benefits as of January 2024 didn’t previously provide health coverage to their workers.

SCRS also offers healthcare group plans and a 401(k) Multiple Employer Plan (MEP).

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