??? ICHRA - my day job has less than 50 Employees . . .

[myinsurebiz]

ICHRA - my day job has less than 50 Employees . . .

They are offering us an ICHRA using a TPA called ZizzlHealth which seems to use the Marketplace.

Using Zizzl for a specific plan - my Premium = $709 . That is after my Employer contribution of $870 per month.

If my employer didn't offer us an ICHRA and I went to the Marketplace and used my tax subsidy - my Premium for the same plan = $732.

What happened to the $870 my company paid each month?

Are there some tax deduction advantages for the Company that I'm not aware of -or- why did they do it?

 

[LH Happy]

Out of curiosity, how much is your subsidy? There's no subsidy with ICHRA, so your employer is covering that part in a different way.

 

[myinsurebiz]

Out of curiosity, how much is your subsidy? There's no subsidy with ICHRA, so your employer is covering that part in a different way.

$1550.

But - the rate without ICHRA - also includes my wife. Without her - the Premium would be $551

 

[Jim Wright]

ICHRA - my day job has less than 50 Employees . . .

They are offering us an ICHRA using a TPA called ZizzlHealth which seems to use the Marketplace.

Using Zizzl for a specific plan - my Premium = $709 . That is after my Employer contribution of $870 per month.

If my employer didn't offer us an ICHRA and I went to the Marketplace and used my tax subsidy - my Premium for the same plan = $732.

What happened to the $870 my company paid each month?

Are there some tax deduction advantages for the Company that I'm not aware of -or- why did they do it?

Couple things here.

1. Not marketplace. Off Exchange plans only. Can't get a pre tax contribution if it's on exchange.

2. Can't use both ICHRA contribution and Subsidy. One or the other. It also seems like your contribution is "affordable" so you wouldn't be eligible for the subsidy anyway. If you took it, you would have to pay it back.

I implement a lot of ICHRAs and we partner with Zizzl on some. Many reasons a company will do it. Usually cost of group plan has gotten out of control and this is a way to stabilize.

 

[Jim Wright]

$1550.

But - the rate without ICHRA - also includes my wife. Without her - the Premium would be $551

You can put your wife on the marketplace with a subsidy if there is no contribution for her.

 

[myinsurebiz]

Couple things here.

1. Not marketplace. Off Exchange plans only. Can't get a pre tax contribution if it's on exchange.

2. Can't use both ICHRA contribution and Subsidy. One or the other. It also seems like your contribution is "affordable" so you wouldn't be eligible for the subsidy anyway. If you took it, you would have to pay it back.

I implement a lot of ICHRAs and we partner with Zizzl on some. Many reasons a company will do it. Usually cost of group plan has gotten out of control and this is a way to stabilize.

In response to #2:

I get that. BUT - if they didn't offer the Employees the ICHRA in the first place - the Employer could still use a TPA to deduct and pay the Premiums - the Employee in most cases could get a better plan / price and the Employer wouldn't have to pay out that much contribution and could maybe fund a HSA or something.

And on the Affordable part - they look at the lowest priced Silver - right? Most of those plans suck it seems.

 

[myinsurebiz]

I'm wondering what or if the Employer gets a tax break or something for paying out the contribution?

 

[Jim Wright]

In response to #2:

I get that. BUT - if they didn't offer the Employees the ICHRA in the first place - the Employer could still use a TPA to deduct and pay the Premiums - the Employee in most cases could get a better plan / price and the Employer wouldn't have to pay out that much contribution and could maybe fund a HSA or something.

And on the Affordable part - they look at the lowest priced Silver - right? Most of those plans suck it seems.

Yes, affordability is based off Lowest Cost Silver (because that's what the IRS does)

If they didn't offer the ICHRA, you wouldn't be able to payroll deduct the premium pre tax. The ICHRA is what gives you the tax benefit.

 

[myinsurebiz]

You can put your wife on the marketplace with a subsidy if there is no contribution for her.

Yea - no contributions for anyone but the employee.

Crazy thing - going thru Marketplace the same plan is only like $20 more a month and includes the husband and wife.

 

[myinsurebiz]

If they didn't offer the ICHRA, you wouldn't be able to payroll deduct the premium pre tax. The ICHRA is what gives you the tax benefit.

That makes sense.

Somebody making less than $30k a year - probably gets a refund I would imagine.

In my case - I wouldn't mind having to have my premiums post tax since the plan is much better and maybe the Employer would fund a HSA or comprable product. I wonder if that would be pre-tax?