The ICHRA (Individual Coverage Health Reimbursement Arrangement) is a new insurance model for company healthcare. Employers offer tax-free stipends that employees can use to purchase their own individual health insurance plans, leading to greater choice for employees and fixed costs for employers.For Brokers & Advisors
Since COVID-19, more children than ever are learning from the confines of their own homes. Prenda, an edtech company offering community-based microschools, has seen wide scale adoption. Prenda's model of pairing "learning pods" of 5-10 students with a certified learning guide has helped overwhelmed parents navigate the new normal.
Like many schools, Prenda has a diverse mix of employees — part-time, hourly, and full-time staff. Prenda's Head of People Kristy Williams wanted to ensure that every employee had access to health insurance while also managing the company's costs. A group plan didn't allow Prenda to tailor plan options and company contributions to its different employee types.
"Group plans can't offer the flexibility that ICHRA gives us in customizing benefits across our employees. With Savvy, we can set different stipends and Savvy manages all the details."
With Savvy, Prenda was able to offer a flexible stipend to every employee. Prenda created three different stipends: full-time salary, full-time hourly, and part-time. Every employee could decide which plan to purchase with their unique stipend. Savvy's technology helped employees navigate their health insurance purchase while managing the monthly distribution of stipend.
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