Jack Hooper is a CEO of TAKE Command, an ICHRA administrator who supports the refund of the employer's health insurance.
All generations have changed our way of working, and their experience at work and their expectations for benefits will change. In the previous generation, we have seen companies shifting from pension system to 401 (k).
And the millennial generation is established as the largest generation of labor, and we are now witnessing the influence of this generation. Millennials (generally defined as generations born between 1981 and 1996) are partially influenced by their experience as consumers and have different expectations for company benefits. Often. Many adults in the age of Amazon, Uber, and Doordash expect personalization, autonomy, and ease of use in other aspects of life, such as employee benefits.
Many millennials are willing to change jobs to find what they want. According to Gallup reports, six out of ten millennials are open for new job opportunities, giving organizations the pressure of maintaining employees. According to recent surveys, employees have expired to “average of $ 36,295 per year for a decrease in productivity and re -employment costs.” Employers need to provide competitive welfare to maintain millennial employees.
As a CEO of personal insurance HRA administrator, I realized that many business leaders and recruiters are considering this new health insurance model that provides the personalization of millennials. 。
Individual compensation range HRA
In general group health insurance, many plans are uniform, and employers choose the opinions of employees, and have the flexibility to meet the personal health needs of employees and their families. I am.
In contrast, individual compensation HRA (ICHRA) deals with this lack of flexibility. The concept is simple. Instead of selecting a group plan for employees, the employer establishes a budget for welfare, and the employees select their own plans in the personal market. If an employee pays medical expenses, if the receipt is submitted, the employer will refund medical expenses as a salary.
The most important thing is to sitting employees in the driver's seat, whether ICHRA is a millennial generation or other employees. Each employee can choose the best plan for you. Priority varies from mental health security to specific doctors in the network and important drugs.
Consideration for companies
There are some points to keep in mind for business leaders who are considering switching to ICHRA.
1. Budget
The allowance provided to employees determines which plan can be purchased in the personal market. The employer needs to take time to investigate the local market and determine the amount to be presented so that employees can ensure necessary security without a large amount of self -burden.
2. Employee group
In many large companies, employees are distributed into various areas and business units. One state medical expenses can be higher than other states. Usually, part -time and seasonal employees, which are usually difficult to cover with a group plan, can provide benefits through ICHRA. The employer needs to make a plan in consideration of these groups, and to assign welfare in accordance with it.
3. Support
Until now, many employers have made decisions on employee health insurance. With the introduction of ICHRA, many employees will make these decisions for the first time, and for the first time, they will take out health insurance. Employers need to aim for employees to navigate individual markets and make them easier to find plans that meet their needs.
Appropriate fit decision
Of course, Ichra is not suitable for everyone. Some companies do not feel stressed about the cost of health insurance, and believe that migration can cause unnecessary stress for employees and personnel representatives. The majority of employees are already satisfied with the group plan and may hesitate to change.
The provision of health care to employees is complicated, and companies need to carefully plan changes before making significant changes to welfare.
I myself am a millennial generation, and my company has mainly led the employee of the millennials, suggesting that there is nothing more motivated by the team as the question, “Why do you need so hard?” I learned that. Health insurance doesn't have to be so complicated. ICHRA will allow you to have a healthy labor, healthy business, and a millennial team that is satisfied with your work.
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