Your employees have an important decision to make regarding their new Individual Coverage HRA (ICHRA) benefits — should they opt in or opt out of the benefit?
Let's take a look at the options:
Opting into the ICHRA:
- Employees who opt in will be able to participate in the ICHRA for that benefit year and will receive a monthly allowance that accrues month to month.
- Employees who opt in will need to login to their account and from their dashboard, attest that they do or will have individual insurance coverage for the upcoming benefit year.
- Once an employee has opted in and attested, they will upload their insurance documents directly to PeopleKeep from their dashboard. We’ll review they expenses and recommend you pay out eligible expenses. To ensure the benefit is compliant, you should not pay out an expense until we’ve verified it’s eligible and let you know they are due. We’ll email you each week when something is due and you’ll also see this available on your dashboard at any time.
- Employees who have opted in and attested to their individual insurance coverage will need to re-attest each month in their account that their coverage is still in effect in order to receive a reimbursement that month. They will not be required to continually upload documentation for verification.
- Employees who opt in cannot take advantage of the Federal Government’s Advance Premium Tax Credits even if they qualify for the credit that benefit year.
Opting out of the ICHRA:
- Employees who opt out won’t be able to participate in the ICHRA for that benefit year and will not receive a monthly allowance.
- If an employee opts out, they may be able to take advantage of the Federal Government’s Advance Premium Tax Credit during that benefit year.
- If the benefit allowance your company provides is considered “affordable” then the employee cannot take advantage of the Advance Premium Tax Credits, even if they opt out. Employees in this situation may choose to opt in after initially opting out. See our post for help calculating affordability: https://www.peoplekeep.com/blog/determining-ichra-affordability-in-2020
- You will not be billed for any employees who remain opted out when the benefit starts.
Employees who do not make a decision:
- Employees who do not opt in or out of the benefit by the benefit start date, will automatically be opted in to the benefit for the entire year.
- These employees will be included in your subscription.