It is important to understand how ICHRA differs from traditional group insurance, how your premium gets paid, and what your responsibility is.
What is ICHRA and how do my insurance premiums get paid?
ICHRA stands for Individual Coverage Health Reimbursement Arrangement. It is an arrangement that allows your employer to provide you with a set allowance of pre-tax dollars each month that you get to spend on your health insurance premium. Because your employer has chosen benefitbay as their ICHRA provider, you get access to a pre-funded checking account, called an ARC account, to pay for your premiums. Each employee will receive their own ARC account in their name that is pre-funded by their employer each month. You do not pay your health insurance premium out of pocket. Instead, you pay the full premium using your ARC account, and your employer will payroll deduct your portion separately.
Do not use your personal bank account or credit card to pay all or part of your health premium. You will use the ARC account provided to you through your login at benefitbay.
What if my premium costs more than my ICHRA employer contribution?
The beauty of ICHRA is that it places YOU back in the seat of a decision maker when it comes to your health coverage. Your employer decides your monthly allowance and you control what plan you purchase. Whether you choose a plan that costs less than your allowance or cost more is completely up to you and what you need from your benefits. If you choose a plan that cost less than your employer allowance then no additional funds will be deducted from your paycheck. If you do choose to purchase a plan that is more expensive than your allowance, the remainder will be deducted from each paycheck by your employer. While you shop for your individual plan, our platform allows you to view how much each plan will cost you per pay period. You will easily be able to compare plans based on how much you are willing to spend and what level of benefits you're needing.
How do I access my ARC Account information?
To access your individual ARC information, you will log into benefitbay and the information can be found by selecting the 'Coverage' tab on your left navigation bar. You will be provided with a routing and account number that can be used to pay for your health premium.
When would I need to use my ARC Account information?
After you select a plan through our shopping tool, the benefitbay enrollment team will submit your application to the health insurance carrier. Our team will use your ARC account to make your first premium payment and attempt to set up autopay on your behalf. Because this is YOUR policy, some carriers will not allow us to set up auto pay for you. In those instances, one of our support team members will reach out to you to help you set up your ARC account on autopay. If you do not need our assistance or if the carrier is contacting you directly, you can use your ARC information to make a one time payment for your monthly premium or set it up on auto pay account. Pay attention to any emails you receive from support@benefitbay.com as we will reach out to you to complete this step. Also pay attention to any contact from your carrier about unpaid premiums. If you are ever wondering whether your premium has been paid, you can view that information by longing into benefitbay.
You may not use your ARC account to pay for health bills, prescriptions, co-pays, or any other services besides your monthly premium. Contact your employer if you have further questions about this
As a reminder, the health plan you enroll in belongs to you; you are the policy holder. Benefitbay owns the bank account that is use to pay for your premium. If you ever leave your current job, your plan stays with you as long as you want it.