Personalization over cookie-cutter — How ICHRA can offer a new way to unique employee benefits

In a now-classic Saturday Night Live skit, customers were basically coerced into getting a cheeseburger with chips no matter what they ordered at a lunch counter. People didn’t look especially thrilled with the lack of choice, but they were hungry and took what they could get.It wouldn’t be surprising if the diners ended up going to other places to eat.

If this is how people feel about a lack of choice at lunchtime, then it’s not hard to imagine how frustrated they feel when they receive cookie-cutter healthcare benefits. This frustration helps to illustrate why flexible ICHRA plans are gaining popularity: because of the freedom of choice that people desire and that personalized health care provides. 

Craving freedom of choice: encoded in the human brain

Scientific research indicates that people appreciate the opportunity to choose. The Journal of Neurophysiology conducted an in-depth study on this topic, noting how choice allows people to move towards preferred outcomes and how they appreciate this capacity. And, let’s face it, the freedom to choose is at the very heart of American values. 

ICHRA and the ability to choose through personalized employee benefits

If you’re new to the concept of offering HRAs to employees or if you want to know more about what ICHRA is, here’s an overview. ICHRA differs from one-size-fits-all traditional group health insurance plans, instead providing a system that allows for unique employee benefits while reducing the company’s administrative burden. 

ICHRA permits employers to designate a certain amount of funds for each eligible employee's company healthcare benefits. The employees are then empowered to use that designated dollar amount to choose the individual health insurance plan that best suits their needs. The employer flexibly reimburses employees for their individual health insurance premiums. 

Here’s more information on how, specifically, ICHRA facilitates personalized health care.

Employees benefiting from personalized health care

“With the majority of the U.S. workforce living paycheck to paycheck and 57% having less than $1,000 in the bank for emergency purposes, the ability for an employee to personalize and control how their money is spent is more critical than ever.” (HR Morning)

When people control their healthcare plans, they can select ones that best suit their needs. For example, perhaps someone needs a plan that provides quality mental health care benefits. No matter the desired specifics, when someone has a healthcare plan that dovetails with their needs, they can receive the healthcare services they require. This can boost health outcomes and proactively address potential issues before they become more significant. 

Plus, employees can become more engaged when they are empowered to choose their personalized employee benefits. This can mean that they focus on making healthier choices and sticking to treatment plans. The result can be more effective management of chronic conditions, reduced health risks, and generally better health in the short and long term.

Moreover, when employees receive personalized benefits, they can also experience greater overall satisfaction, which can contribute to company success. 

Companies benefiting from satisfied employees

Employee recognition company Terryberry points out numerous ways that companies benefit when employees are satisfied. This includes employee retention, which means that the business maintains a stable team with all of the company's knowledge and experience. Plus, turnover is costly. So, when employees are satisfied and stay with their company, the business doesn’t have to incur all of the time and money costs of recruiting, hiring, training—and then trying to retain—the replacement employees. 

Satisfied employees are typically more motivated and productive, which can contribute to the company’s bottom line in countless positive ways. They also contribute to a positive workplace culture through increased collaboration, reduced absenteeism and lateness, and enhanced creativity and innovativeness. They’re more likely to focus on pleasing the company’s customers, which benefits everyone in the business. Companies with satisfied employees are also more likely to recruit top talent. 

Dealing with employee dissatisfaction with their benefits

Human resource expert SHRM reports that in 2023, employee satisfaction with benefits fell to its lowest point in a decade, at only 61%. Employees who are unsatisfied with their benefits may well be less satisfied with their employer overall. This can lead to lowered production, more absenteeism and tardiness, and more turnover and all of its associated costs. 

As a solution, the SHRM article suggests that workplace leaders avoid a one-size-fits-all approach to health care. Instead, companies should look to deliver solutions that fit their employees’ varied needs. The benefits of doing so will be an improved employee experience with workers who are more loyal to the company, more productive on the job, and more satisfied with their employment.

ICHRAs allow businesses to offer unique employee benefits that foster these ideal outcomes. 

ICHRA health insurance onboarding demo

To find out how to incorporate an ICHRA into your benefits approach and facilitate your team’s ability to make their own choices for unique employee benefits, we invite you to view our ICHRA demo. Thatch offers businesses like yours simpler ways to provide personalized healthcare benefits to their teams.

Learn more about how Thatch can help your team get the coverage they need.