SALT LAKE CITY, October 25, 2022 -- PeopleKeep, the leader in personalized benefits for small to midsize organizations, released its annual report on ICHRAs, showing that employers are using ICHRAs to provide a health benefit that goes far beyond covering premiums. The average monthly allowance is more than double the cost of a self-only gold plan available for a 40-year-old.
According to PeopleKeep’s data, monthly allowances have increased across employers of all sizes and for employees in all family status categories, from single to married with dependents. The average monthly allowance employers offered their employees in the past year was $981, an 11% increase from last year. This year’s average allowance overall was more than double the cost of the average lowest-cost self-only gold plan premium of $462, as reported by the Kaiser Family Foundation.
“Personalized healthcare benefits that allow the employee to make their own choice of plan based on a set budget are a win-win for small to midsize organizations and their employees,” said Victoria Glickman Hodgkins, CEO of PeopleKeep. “Companies are seeing the financial and competitive benefits of placing healthcare purchasing power in the hands of their employees, rather than picking a plan--or, at best, a few plans--that don't fit the needs of all of their workers. With an ICHRA, which has no allowance caps, employers are demonstrating their willingness to allocate funding sufficient for most employees to choose very high-quality coverage.”
PeopleKeep’s data shows that over the last year, four out of five employers offered an ICHRA that covers the premium as well as IRS-eligible healthcare expenses such as prescriptions. For employers who choose to cover premiums and other expenses, the average monthly allowance of these accounts was $1,300.
PeopleKeep’s annual report covers trends in the individual coverage health reimbursement arrangement (ICHRA) market to discover how HRAs meet the needs of both employees and employers. PeopleKeep’s findings complement the recent industry report published by the HRA Council, which found that ICHRA adoption by employers is increasing significantly since ICHRA’s inception in 2019.
The PeopleKeep report utilizes data gathered from PeopleKeep’s ICHRA customers from midyear 2021 to midyear 2022.
View the full PeopleKeep report here.
PeopleKeep helps organizations take care of their employees with hassle-free benefits. As the leader in personalized benefits, PeopleKeep has learned what the thousands of employers who use our software want: a seamless employee experience, easy-to-use software, and automated compliance. Visit www.peoplekeep.com for more information.