![]() ![]() Plus, these arrangements require employees to do considerable work compared with signing up for an employer plan - they must apply for and select a plan, set up premium payments, and understand what expenses the ICHRA covers. And firms may find strategies to shift sicker workers to HRAs, even with guardrails in the legislation meant to prevent this. Increasing such arrangements could raise ACA marketplace premiums they are likely to attract sicker-than-average firms that can spend less to fund an ICHRA than they must pay for a group health plan. The legislation would codify provisions similar to a Trump-era rule currently in place that allows employers to forgo offering a regular group health insurance plan and instead offer an HRA (a tax-favored, employer-funded account) that workers could use to buy their own individual insurance coverage. As a result, other individuals and small businesses remaining in ACA-regulated markets would see higher premiums.Įxpand Individual Coverage Health Reimbursement Arrangements (ICHRAs). Similar to a Trump-era rule a court struck down in 2019, the bill would segment insurance risk pools: some individuals who are younger and healthier, or small businesses whose employees have that profile, could get plans with lower premiums because they would be priced separately from ACA-compliant coverage and would not have to meet ACA standards, such as a requirement to cover a set of essential health benefits. This would exempt them from ACA standards that otherwise apply to health plans in the individual and small-group markets. The legislation would allow AHPs, a type of health plan that trade associations, professional groups, and other organizations may offer their members, to cover self-employed individuals and small businesses as if they were large employers. Expand association health plans (AHPs). ![]() Proponents of these changes claim they will increase choices and reduce red tape for employers, but a closer look shows the problems they would create. The House is moving toward a vote on legislation that would weaken Affordable Care Act (ACA) consumer protections and private market rules.
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