What You Should Know:
– Remodel Health, a provider of Individual Coverage Health Reimbursement Arrangements (ICHRAs), has announced a significant growth funding round of over $100M. ICHRAs offer employers predictable annual benefits costs, providing stability and potential cost savings compared to traditional group health insurance.
– The investment, led by Oak HC/FT and Hercules Capital, will support Remodel Health’s continued expansion and innovation in the ICHRA market.
Simplifying ICHRA Adoption for Employers and Employees
Remodel Health offers a comprehensive, white-labeled technology platform that streamlines the process of launching and managing ICHRA plans. The platform provides:
- Plan creation and administration tools
- Call center support
- Automated quoting
- Employee onboarding
- HRIS integrations
- Payments with carriers
- Access to ancillary products
This end-to-end solution simplifies ICHRA adoption for employers and provides employees with a user-friendly experience.
Benefits of ICHRAs
The ICHRA market is experiencing rapid growth and is projected to expand significantly in the coming years. ICHRAs provide several advantages for employers and employees:
- Flexibility: Employers can choose contribution levels, and employees have more personalized benefit options.
- Cost Savings: ICHRAs can offer significant cost savings for employers, particularly small and mid-size businesses.
- Tax Advantages: Contributions are made with pre-tax dollars, providing tax benefits for both employers and employees.
- Access to ACA Exchanges: Employees can use their ICHRA allowance to purchase health insurance on the Affordable Care Act (ACA) exchanges.
“We are on a mission to resource organizations with missions that matter, partnering with employers and their brokers to do so. Remodel Co-Founders Justin Clements and Scott Lingle and I started trailblazing in 2015, and PeopleKeep founder Paul Zane Pilzer identified this shift like pension to 401(k) in the early 2000’s,” said Austin Lehman, CEO of Remodel Health. “We are now seeing it begin to come to fruition. The Oak team have been great dreamers with us and have great connections in the insurance payer space to accelerate growth and help increase access to medical care and resource organizations with missions that matter.”
