Expands infrastructure powering ICHRA solutions for brokers and employers
Vericred, a data services company simplifying the exchange of health insurance and employee benefits information, announced the immediate availability of its ICHRA Affordability Calculator API. This new functionality is an extension of Vericred’s ICHRA Development Kit, which enables HRtech and InsurTech companies to build fully digital, end-to-end Individual Coverage Health Reimbursement Arrangement (ICHRA) solutions for brokers, employers and their employees.
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Vericred launches ICHRA Affordability Calculator API, expanding infrastructure powering digital solutions for brokers and employers.
Under ICHRA regulations, employers with greater than 50 employees must meet certain minimum contribution requirements or be subject to financial penalties. The minimum employer contribution is a complex calculation based on employee classification, age, home and work locations, and the Affordable Care Act (ACA) plans available in these various locations. Vericred’s ICHRA Affordability Calculator API programmatically determines the minimum amount that an employer would need to contribute to their employees’ health insurance costs to comply with ICHRA affordability requirements.
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Small groups, those generally with less than 50 employees, are not subject to the same requirements and may actually want an “unaffordable” ICHRA so that their employees can be eligible for ACA subsidies. The Calculator also determines the subsidy that an employee would receive if they opted out of an unaffordable ICHRA and, instead, purchased a plan directly through the federal or state-based public exchange. This allows InsurTech companies to develop robust decision support tools comparing each employee’s costs under affordable and unaffordable ICHRAs.
“There is considerable momentum for companies, large and small, to adopt ICHRAs as an alternative to traditional employer-sponsored coverage,“ said Michael W. Levin, Vericred’s co-founder and CEO. “Our ICHRA Affordability Calculator is yet another element of the infrastructure necessary for developers to create great ICHRA experiences for brokers, employers and employees.”
