A Cost-Savings Solution for Employer Provided Healthcare

Over half of people in the U.S. report having medical debt of some sort, expressing that it affects their ability to move forward financially. Because of this, many people are delaying care. Employers, in the meantime, are trying to control costs, with little to no avail.

Unfortunately, most solutions for cost-savings treat only the symptoms rather than the disease. This leaves many Americans struggling in the long run. One solution to this issue is utilizing the individual coverage health reimbursement account (ICHRA), which is a tax law that was passed in 2020. This law shifts the purchasing power to tens of millions of consumers throughout the health insurance purchasing process, taking it out of the employers’ hands.

This means that employers can give employees the same money they would normally use to buy health insurance for their workforce, so that employees can get the insurance they want. This empowers employees as the consumers, and affects how healthcare is financed in a positive way.

Allowing employees to choose their own insurance ensures they are receiving the benefits they want and need, and can lower employer costs in the long run. With inflation soaring and employers looking for ways to cut costs, this can be a great option for organizations to consider that benefits not only the company’s budget, but the employee’s options as well.

For more information contact Eric Allen Kauk, Esq., LL.M. at (813)-203-0208 for guidance.