New HRA Council data report shows large businesses are the
fastest growing segment adopting Individual Coverage HRAs in lieu
of group coverage
At a glance:
- Large employers with more than 200 employees are the fastest
growing cohort, with adoption among all large employers up 83
percent over 2023.
- The largest cohort of new adopters, 84 percent, are small
businesses who are offering health insurance for the first
time.
- New zip code data reveals top metro areas for HRAs
HOUSTON, May 16, 2024 /PRNewswire/ -- The HRA Council
today released its third data report, 2024 Growth Trends in
ICHRA & QSEHRA, tracking the continued growth of Individual
Coverage and Qualifying Small Employer Health Reimbursement
Arrangements. Overall adoption of HRAs is up nearly 30 percent over
2023, with an 83 percent increase in large employers choosing
ICHRA. Small employers remain the largest cohort, with 84% of new
adopters now able to offer health insurance to employees for the
first time.
While small businesses continue to be the
largest cohort of HRA adopters, there's an 83% increase in large
employers.
Statistically significant zip code data is featured for the
first time in the report, with heat maps showing adoption to
demonstrate how HRAs solve for modern teams of remote and hybrid
workers, as well as for growing companies with multiple
locations.
"Not only are a majority of small employers able to offer health
insurance for the first time," said HRA Council Executive Director
Robin Paoli, "a majority of their
employees have never had their own health insurance. ICHRA and
QSEHRA are enabling more Americans to choose quality, ACA-compliant
health plans with mental and behavioral health care and other
essential benefits."
The report shows 60 percent of employees choose either a Gold or
Silver plan, often with enriched benefits, while approximately a
third choose Bronze plans which often come with the popular
tax-advantaged Health Savings Account option. Workers are becoming
well-informed health insurance consumers, assessing a variety of
plans with their local doctors and hospitals in-network, and
choosing the best health insurance coverage for themselves and
their families.
Two strong trends reflected in the report are employee
satisfaction and younger employees gaining access to care. First,
once a company adopts an ICHRA or QSEHRA, they tend to keep it, in
part because employees are able to select health insurance with
personally significant options. Second, ICHRA and QSEHRA continue
to bring younger lives into the national risk pool, with
approximately two-thirds of employees being under age 45. As
dependents often are younger than the covered employee, families
coming into the individual plan marketplace via HRAs are lowering
the average age and strengthening the risk pool.
For more information about the HRA Council, the 2024 Data
Report, and how HRAs offer affordable, quality choices for employer
sponsored health insurance, please visit HRACouncil.org/report
Media Contact:
Amy Skinner
amy@takecommandhealth.com
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SOURCE HRA Council