Frequently asked questions

HealthJibe

Tell us a little about Digital Health Innovations?


Digital Health Innovations (DHI) is benefits automation company that offers small and mid-size businesses an easier way to provide employee benefits without the need for traditional group plans. Our program utilizes health insurance preimum reimbursements to provide cost certainty for the business owner, while helping employees monetize healthy habits and stretch benefit dollars through wellness and tax incentives. And it's all delivered through a simple mobile app.




What is HealthJibe?


The HealthJibe platform is the first benefits automation platform that combines the power of tax-advantaged account-based benefits with consumer health engagement technology. Our driving goal for the HealthJibe platform is SIMPLICITY: Simple for the employer: Set a budget. Direct your employees to install the HealthJibe app on their mobile phone. Go back to running your business. Simple for the employee: Snap a picture. Get tax-free cash in you back account to help pay for health insurance and medical expenses. HealthJibe also makes consumer health engagement the foundation of your health benefit in order to stabilize health care costs over the long term - for you and your employees. HealthJibe promotes awareness of emerging health risks and lifestyle habits and encourages employees to focus on prevention in the right way: with their own doctor -- not their employer. No need for an expensive, risky wellness program. Health engagement features are integrated into the HealthJibe app at no extra cost.





QSEHRA

What is a QSEHRA?


When the 21st Century Cures Act became law in 2016 the era of defined contribution health benefits for small businesses ushered in. By authorizing the creation of Qualified Small Employer Health Reimbursement Arrangements (QSEHRA), the law allows companies to use tax-preferred dollars to reimburse employees who buy their own insurance, as an alternative to establishing a traditional group health plan. Instead of setting up a group plan you simply reimburse employees (pre-tax) a fixed amount per month -- that you decide. No more carrier meetings. No more annual renewals. No more COBRA. And no more frustration wondering if employees value the benefit at all.




Who can offer a QSEHRA?


Small employers with fewer than 50 full-time equivalent (FTE) employees AND who do not offer a group health plan to any of their employees can offer QSEHRAs to their staff. An FTE employee is one who works 130 hours per month, or 30 or more hours per week for 120 consecutive days.





ICHRA

What is an ICHRA?


The Individual Cover HRA (ICHRA) is a game-changer for employers looking to provide health benefits to their employees. It represents a new, more modern model of employer-sponsored health insurance. ICHRA (some pronounce it “ick-rah”) is available for employers to start using in January 2020. ICHRA is an evolution of another type of HRA, called a QSEHRA (some pronounce it "q-sarah"), that was created in 2017. Both allow employers to reimburse employees tax-free for individual health insurance, but ICHRA represents a “super-charged” version of QSEHRA with higher limits and greater design flexibility that will appeal to more employers. ICHRA takes the burden of managing a health plan and underlying health risks off of the employer. You or your clients won’t have to hassle with renewals, worry about participation rates, stress about what doctor networks your employees want, or be surprised by annual premium increases. Instead, with ICHRA employers can decide which employees qualify, set their monthly allowances, and get back to managing their business while employees get to choose the plans they want.




Who can offer an ICHRA?


Businesses, nonprofits, churches, local governments, and other groups can offer the ICHRA. There are no size restrictions or minimum participation requirements for employees.




What are the employee eligibility requirements for an ICHRA?


Employee eligibility is based on two factors: what the regulations dictate and what the business decides. The regulations require all employees (and their dependents, if eligible) to be covered by individual health insurance in order to participate in the ICHRA. Any employees covered by a spouse’s group plan or short-term insurance, belonging to a health care sharing ministry, or not covered at all cannot participate in the ICHRA. Businesses also have jurisdiction over employee eligibility. They can decide who is eligible for the ICHRA based on 11 different employee classes.




What counts as individual insurance coverage under an ICHRA?


To participate in the ICHRA, employees must be covered by individual health insurance. This can be an individual health policy purchased from a public exchange, a policy purchased off the exchange, Medicare Parts A and B, or Medicare Part C.




How do employees get individual coverage for the ICHRA?


If employees are purchasing individual health insurance that isn’t Medicare, they’ll need an enrollment period during which they can shop for coverage either on or off the public exchange. They can get this enrollment period either during the annual open enrollment period in November and December or through a special enrollment period (SEP). If your business is offering an ICHRA with a start date of January 1 (and you’ve decided to offer the ICHRA at least 90 days before that date), your employees will participate in the open enrollment period. This enrollment period takes place from November 1 to December 15, and employees can use it to purchase health insurance either on or off the public exchange. If your ICHRA has a mid-year start date (or if you don’t decide to offer the ICHRA in time for your employees to participate in open enrollment), your employees will need to use an SEP to gain coverage. Becoming newly eligible for an ICHRA is a qualifying life event for an SEP, so once employees are eligible they’ll receive an SEP of 60 days during which they can choose and purchase individual coverage. All new hires will receive an SEP as well, as soon as they become eligible for the ICHRA.




How much can an employer offer through an ICHRA?


Businesses can offer as much or as little as they’d like to employees through the ICHRA. Businesses can choose to offer different allowance amounts to different employees based on 11 different employee classes. They can also differentiate allowance amount based on the size of the employee’s family and the employee’s age. If your business decides to offer older employees in the same class more money, you must offer the oldest employees no more than three times the allowance amount of the youngest employees in the class. For example, an employee class with employees ranging in age from 30 to 60 that offered 30 year olds $100 a month would only be able to offer 60 year olds $300 or less.




What can an ICHRA Reimburse?


The ICHRA can reimburse all items outlined in IRS Publication 502, including health insurance premiums. Your business may choose to restrict this list to only certain items. For example, you may choose to offer an ICHRA that only reimburses health insurance premiums.




How does the ICHRA affect premium tax credits?


Individuals participating in the ICHRA cannot receive premium tax credits. However, employees who are eligible for premium tax credits and whose HRA allowance is considered “unaffordable coverage” under the Affordable Care Act can opt out of the ICHRA and collect their premium tax credits. Employee can opt out of the ICHRA once every benefit year, and must make the decision before the plan begins.




What are the notice requirements associated with the ICHRA?


Businesses offering the ICHRA must send a formal notice of the benefit to their employees once a year. For existing ICHRAs, businesses must send employees the notice at least 90 days before the start of the new plan year. For new ICHRAs, the notice must be sent by the day plan eligibility begins, at the latest. New hires during the plan year must also receive the notice by their first day of eligibility. Among other items, the notice must contain: 1. The terms on which the ICHRA is offered, including the employee’s allowance amount and the maximum dollar amount made available to single employees (this figure will be used in determining whether the ICHRA qualifies as “affordable coverage”) 2. How being offered the ICHRA affects employees’ eligibility for premium tax credits 3. The right of employees to opt out of the ICHRA 4. The dates of when coverage will be available and when the HRA plan year begins and ends 5. A statement that the ICHRA isn’t a QSEHRA or any other type of HRA 6. Contact information of the person who will help answer questions about their ICHRA benefit





CONTACT US:

 

Digital Health Innovations, Inc.

954 Ridgebrook Road

Suite 200

Sparks, Maryland 21152

info@healthjibe.com

 

T: 410.340.9917

 

Click for: Online Support

 

 

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Disclaimer: See a licensed agent for detailed information on your state. Digital Health Innovations, Inc. does not sell health insurance.

 

©2015-2016 Digital Health Innovations, Inc. All rights reserved.

Disclaimer: See a licensed agent for detailed information on employee benefits in your state. Digital Health Innovations, Inc. does not sell health insurance.
 
© 2016-2019 Digital Health Innovations, Inc.