Fringe Benefit Group, an industry leader in the design, implementation and administration of benefit plans for hourly and part-time workers, today announced The Contractors Plan ICHRA, a flexible, cost-effective, and compliant solution for Service Contract Act (SCA) and Davis-Bacon Act employers who face challenges in providing health benefits to their employees. By offering Individual Coverage Health Reimbursement Arrangements (ICHRA) as part of the fringe benefit package, prevailing wage contractors can fulfill their obligations while providing valuable health benefits to their employees. Employees can now choose their own individual health insurance plans based on their needs and not a one-size-fits-all group health plan.
The Contractors Plan, Fringe Benefit Group’s flagship brand, is a comprehensive Third Party Administrator, offering retirement plans and major medical, dental, vision and life insurance designed specifically for government contractors. The addition of the ICHRA option to The Contractors Plan further expands the company’s robust offering.
“The Contractors Plan ICHRA benefits both employers and their employees. With this plan, employers of any size can reimburse employees for individual health insurance premiums, drastically reduce their workload in administering group medical policies, and ensure they always stay within their benefits budget. Employees get to select the insurance coverage that best suits them and may also be eligible for additional subsidy for dependents. It’s realistic to say that with ICHRA, and the utilization of fringe benefit dollars as well as the additional subsidy now available, entire families may be covered by traditional major medical insurance policies with very little out-of-pocket expense,” said Ben Gelnar, regional vice president of Fringe Benefit Group.
Healthcare is a crucial benefit for employees, particularly in the prevailing wage space, but the traditional group health insurance model can be challenging for employers and employees. The Contractors Plan ICHRA solves several problems. Traditional group health insurance plans can be expensive, particularly for prevailing wage contractors who are often required to provide bona fide fringe benefits as part of their employees’ compensation package. By offering ICHRA as part of the fringe benefit package, employers can fulfill their obligation, stay compliant, stay in budget, greatly reduce time spent administering group benefits, and provide valuable health benefits to their employees.
Traditional group health insurance plans can be complex and challenging to administer, with employers required to navigate a range of plan options and handle the administration of claims and reimbursements. The Contractors Plan ICHRA simplifies benefits administration by allowing employers to focus on managing reimbursements rather than navigating complex group health insurance plans. Additionally, insurance brokers can assist with the setup and ongoing management of ICHRA accounts, further easing the administrative burden for employers.
“The Contractors Plan ICHRA is an innovative benefit solution that can provide employees with plan choice, lower rates, portability, and flexibility. Now prevailing wage contractors can allow employees to direct their health and welfare dollars to the plan they want while fulfilling all their DOL and ACA obligations,” said Mark Turner, regional vice president of Fringe Benefit Group. “We’ve been helping government contractors for 40 years and we understand the pressures they face. Our goal is to provide employees with greater coverage, at less cost, with increased choice and flexibility – while enabling business owners to get out of the benefits business and focus on winning and operating contracts.”
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