In a COVID Economy, Health Providers Find Financial Relief in ICHRAs and HRASimple
Letting Employees Choose Their Own Benefits with Cost-Saving Model and New Tools Pays Off
DALTON, Ga.–(BUSINESS WIRE)–Even before the first wave of the COVID-19 outbreak, independent, nonprofit and smaller American hospitals and health providers struggled with rising costs, including group health insurance for employees. Pandemic conditions lowering revenue volumes have only added to the financial pressure this sector faces. That’s why one health care employer in Georgia turned to the new Individual Coverage Health Reimbursement Arrangements (ICHRAs) as a creative cost-saving solution.
As of January 2020, ICHRAs allow employers subject to Affordable Care Act requirements to reimburse employees with tax-free dollars for the health plans of their choice. HRASimple, an ICHRA administrator, assists companies with setting up the ICHRA model for their employees, making the transition from traditional group insurance to individual benefits a seamless one.
“In a pre-pandemic time, hospitals already faced thin margins, and it’s only gotten worse,” says Julie Soekoro, CFO of Hamilton Health Care System in Dalton, GA. “In 2020, we decided to adopt ICHRA for our employees as an opportunity to reduce our expenses while at the same time being able to keep as many people employed as possible. Our employees have been very happy with the flexibility in their benefits and we’ve saved $7 million in 2021.”
Even better, HRASimple eliminated the administrative burden for Hamilton Health Care by managing enrollment and payments and offering ongoing support and customer service. This allowed the payroll and HR departments to focus on other priorities—an added value for maximizing resources.
About HRASimple
HRASimple is an ICHRA administrator with a powerful web-based platform that reduces the in-house burdens of managing a group health plan. HRASimple was one of the first in the nation to administer an ICHRA for an employer with more than 2,000 employees. HRASimple is a HealthOne Alliance, LLC company. HealthOne Alliance is a founding member of the HRA Council (HRACouncil.org).
Contacts
Tom Pitcherella
[email protected]
