Our webinar, Built for What’s Next: ICHRAs, Compliance, and Beyond, drew great questions from brokers and employers navigating the rapidly changing benefits landscape. Here’s a breakdown of the top questions asked and the answers provided by our experts.
1. What are the risks of incorrectly classifying employees for ICHRA eligibility?
Employers are responsible for determining eligibility. Errors in class size or funding can lead to internal compliance issues and potential fines if affordability requirements for ALEs (50+ employees) aren’t met. Ameriflex helps employers design compliant plans and verify class structure.
2. Can you offer both a traditional group plan and an ICHRA?
Yes, but employers must carefully class employees. For example, full-time employees might remain on the group plan while part-time employees receive an ICHRA. Participation rules, such as the “rule of ten” for larger groups, must be followed.
3. Can Medicare-eligible employees participate in an ICHRA?
Yes, ICHRAs can cover Medicare premiums, but employers cannot incentivize participation. The plan can simply provide coverage as an option for those eligible.
4. Is COBRA required with an ICHRA?
Yes. Even though an ICHRA is an individual plan, it is considered a group plan by the IRS. Employers with 20+ employees must provide COBRA notices, which Ameriflex includes at no additional cost in the TAAP bundle.
5. How do employees select plans?
Employees use the Ameriflex portal to choose a plan based on their location, needs, and budget. Please note that plan On-exchange or off-exchange options are available, and brokers can be assigned as the agent of record in the system. This feature is available strictly in the states where our quoting tool is supported.
6. Are pre-funding premiums required?
No. Ameriflex uses virtual accounts and ACH payments to ensure premiums are paid automatically. Employers are invoiced after the carrier payment is processed.
7. Can ICHRAs support geographically distributed workforces?
Yes. Employers can set allowances based on state or ZIP code, ensuring all employees have access to affordable coverage regardless of location.
8. Can multiple HRAs be paired?
Generally, an ICHRA cannot be paired with another HRA, including a spousal incentive HRA (SIHRA). Employers can fund single versus family options within compliance limits.
9. How does Ameriflex ensure compliance and accuracy?
- SPDs and federal notices included in bundled products
- ACA reporting assistance
- Real-time tracking of employee selections, COBRA notices, and ACH payments
- Ongoing support from dedicated account managers
These questions highlight the complexity of modern benefits administration, and why a reliable partner like Ameriflex is invaluable. Our solutions help employers stay compliant, provide flexibility to employees, and simplify administration for brokers.
Want to learn more about ICHRAs? Watch our previous webinar, or check out our ICHRA Ultimate Guide. And don’t forget to review our Compliance Services page.