ICHRAs Slated To Grow Demonstrably
Federal officials have rebranded individual coverage health reimbursement arrangements (ICHRAs) as CHOICE arrangements. While the name change is recent, new news that ICHRAs are slated to grow demonstrably. Oscar Health CEO Mark Bertolini projected during the company’s investor day that the ICHRA market will reach 2.5 million members by 2029, a 400% increase. It stands now at about 500,000.
States are passing laws to encourage the provision of healthcare. Three states are offering tax credits to employers providing ICHRA funds to workers, while other states are considering different methods to drive adoption.
#ichras #healthcare #coverage
https://www.modernhealthcare.com/insurance/mh-ichra-choice-mehmet-oz-indiana-georgia/
NSA Arbitration Crippling Employer Groups
A new study from the ERISA Industry Committee finds that self-funded employers are facing the brunt of costs from the poorly designed and very provider-friendly No Surprises Act (NSA) arbitration process. Almost 90% of decisions are made in favor of providers and awards are materially above what they were pre-NSA.
One plan sponsor interviewed saw payments associated with the arbitration process increase from approximately $3.5 million in 2025 to more than $6 million during 1H 2026. That employer will pay $12 million for the full year.
Another employer said the payments alone could account for 5% to 6% of total healthcare spending in 2026, with another estimating payments are adding 1% to 3% of the annual healthcare trend.
It is time for Congress to get a backbone and reform the poorly conceived process.
#nsa #nosurprisesact #providers #healthplans #employercoverage
Small and Medium Employers Increasingly Discussing Dropping Coverage
A new survey from eHealth finds that nearly three in four small and mid-size employers that offer traditional group health insurance are considering dropping those benefits for 2027. This is driven overwhelmingly by premium cost hikes. About 73% of those surveyed said they are actively considering dropping those benefits for 2027. More than half of the employers surveyed (54%) said they are facing double-digit premium increases heading into 2027. About 58% said they are considering a move to alternative coverage arrangements such as level-funded or self-insured plans. About 57% of all respondents said they are familiar with CHOICE arrangements (formerly ICHRA), up from 46% in the prior year’s survey.
In other news, a Commonwealth Fund survey finds that, even among those with private coverage, medical debt stemming from both hospital visits and routine care looms large over about a third of U.S. adults.
Additional article: https://www.fiercehealthcare.com/payers/one-third-privately-insured-have-medical-debt-commonwealth-fund-survey-finds
#healthcare #employercoverage #coverage #medicaldebt
Dems Reintroduce Cybersecurity Bill
Democratic senators reintroduced their cybersecurity standards bill with $1.3 billion in funding for hospitals. The bill requires the Department of Health and Human Services (HHS) to adopt new minimum cybersecurity standards for healthcare entities and their associates within two years.
#cybersecurity #healthcare #hospitals
— Marc S. Ryan
