Benafica’s new Individual Contribution HRA (ICHRA) services for Employers reimburses employees tax-free for health insurance
St. Paul, MN – Benafica, LLC today announced its entry into the Health Reimbursement Arrangement (HRA) marketplace. Benafica will administer various kinds of HRA’s, including two new HRA types in the marketplace for 2020 – Individual Contribution HRA (ICHRA) and Expected Benefits HRA (EBHRA). Small, medium, and large employers now have the opportunity with Benafica to offer an alternative approach to traditional group health insurance by paying for individual health insurance for their employees in a manner that is tax free to the employer and income tax free to the employee. This defined contribution model gives employers the ability to budget accurately for their employee benefits, while also giving their employees the freedom to select their own health insurance knowing their employer will reimburse them for premiums. In addition to ICHRA’s and EBHRA’s, Benafica’s full HRA suite of services also includes QSEHRA’s, Integrated HRA’s, Retiree HRA’s, and Dental/Vision HRA’s.
The HRA market at Benafica is administered through its proprietary Benngi software platform. Benngi is an integrated insurance management system that provides a superb experience for both the employer and the employee. Benafica already administers COBRA services with their Benngi platform, and will continue to expand to other compliance offerings throughout the next year.
New legislation from the IRS and other federal agencies have created an expanded opportunity beginning in 2020 for employers to offer an employee benefits package that more closely resembles a Defined Contribution model. Structured correctly, large employers can now satisfy the ACA employer mandate for offering health insurance to their employees by using an ICHRA, the new Individual Coverage Health Reimbursement Account.
With more people entering the individual health insurance market due to HRA’s, Benafica’s individual enrollment team will be available to assist employees with selecting the most suitable individual and family health insurance and Medicare products. “It is important employees don’t feel like they’re left on their own with an HRA”, says Troy Holmen, Director of Individual Insurance Services for Benafica. “We’ll be there to support employees throughout the year with their insurance choices”.
Benafica’s HRA services will be offered alongside more traditional group insurance and COBRA offerings. Benafica is committed to helping all employers find the benefit offerings that are most suitable for each company’s mission, budget, and culture.
For more information, contact:
Lindsey Haller, Marketing Associate
About Benafica, LLC. Benafica, LLC offers insurance solutions and administration for employers, associations, and individuals. Their combined insurance advisory experience and third party administration platform provides clients a more integrated and seamless insurance experience.