ICHRA Explained - Individual Coverage HRA's - Take Command

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Mar 28, 2023

Kyle Estep, VP of Growth at Take Command Health and former Deloitte consultant and Oscar Health leader. He breaks down Individual Coverage HRAs and when they make sense for employers. Topics include comparing ICHRA to other HRAs, designing allowances and age bands, implementation challenges, and tools to help employees pick and pay for individual plans.

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ANECDOTE

Six Months Building An Incubator In South Africa

Kyle lived in Johannesburg to help build an entrepreneurship fund after reading about it.
That experience influenced his early career path and global perspective.

ADVICE

Budget First, Quote Second

Start ICHRA evaluation with the employer's benefits budget, not a carrier quote.
Benchmark local individual-market premiums to set allowances that provide fair buying power.

INSIGHT

No Choice Between Group Plan And ICHRA

Employers cannot offer employees a choice between a group plan and ICHRA as an either/or.
ICHRA can satisfy the employer mandate if designed to meet compliance requirements.

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ICHRA Explained - Everything You Need to Know About Individual Coverage HRA's with Kyle Estep Self-Funded with Spencer, hosted by Spencer Smith, is a podcast for those looking to strategically navigate the complex landscape of health insurance. In this episode, Spencer speaks with guest Kyle Estep from Take Command Health. Kyle Estep is the VP of Growth for Take Command Health. Kyle spent 8 years of his career early on consulting for Deloitte, one of the top consulting firms in the world. He also spent a year in South Africa for Awethu, focused on identifying, developing, and investing in world-class entrepreneurs. He worked alongside the CEO & COO to launch the incubator in Johannesburg, South Africa. His insurance-specific career began at Oscar Health, which was based in New York, and he was hired to help launch their Texas business unit. Kyle built out the sales and distribution team there, helping them scale across the country. His time at Oscar initially led to meeting Jack Hooper, the CEO and Founder of Take Command Health, which offers HRAs for small business health insurance. Specifically, for this episode, we focused on the value of an ICHRA, also known as an Individual Coverage Health Reimbursement Account. An ICHRA is a way for an employer to give tax-free money to its employees so that they can find the health insurance plan that best suits their needs. ICHRAs allow an off-ramp for employers who no longer want to be tasked with managing the risk of a health plan on behalf of their employees, but who still want to provide them with financial support to purchase their desired plans. It is NOT fit for every situation and sometimes depends on the affordability and diversity of plans being offered on the individual market in that specific geographic location. This is where Take Command comes in, in not only consulting around the employer's goals but also analyzing what individual plans are available to benchmark against group health options the employer is quoting as well. In addition to this analysis, Take Command's special sauce is their service around the seamless transition to an ICHRA so that the members still feel supported by their employer. If you have ever wondered what an ICHRA was, what types of companies it works for, and how an employer goes about switching to this arrangement, then this is the episode for you! #SelfFunded #Deloitte #HealthInsurance #ConsumerProtection #ICHRA #Tax #ACA #IndividualMarket #SmallBusinesses #AffordableCareAct #TakeCommand #PublicPrivatePartnership #AdviserOptions