The Short Answer:
The amount you see deducted from your paycheck is based on the number of paychecks you receive in a month. All of the deductions add up to your personal contribution to your total monthly insurance premium. Your total contribution is the leftover cost after your employer pays part of your premium.
The Explanation:
If you choose to participate in your employer’s ICHRA Health Care Plan you will be assigned an Advanced Reimbursement Checking Account (ARC) from benefitbay™ to pay monthly premiums for your individual health insurance coverage.
During the enrollment and application approval process, you will need to pay your first-month premium AND set up auto-pay for subsequent premium payments. It is important to use the routing and account numbers in your Advanced Reimbursement Checking Account provided by benefitbay™ and not use your personal banking account.
After enrollment is completed, benefitbay™ will receive the details of your enrollment and cover the full monthly premium for your new coverage automatically.
Once your plan becomes effective, your portion of the monthly premium:
Full Premium – Employer Contribution = Your portion
will be deducted from your paycheck according to your payroll frequency. This is similar to what you are used to with past employer group insurance plans.
If you use your employer's ICHRA funding, your additional premium deductions will be pre-tax. If you use government subsidy dollars, your additional premium deductions will be post-tax.
An Example:
A plan you're interested in has a total monthly premium of $500
Your employer is contributing $200.00 a month for your individual health plan
Your total portion to pay of your premium is $300.00
You would use the benefitbay™ Advanced Reimbursement Checking Account (ARC) to purchase your plan, meaning the benefitbay™ advanced reimbursement checking account would put $500 towards your premium. Then on payday, you will see a pre-tax deduction from your pay.
If you are paid monthly
Your paycheck will show a $300.00 deduction.
If you are paid twice a month
Your paychecks will show a $150.00 deduction each.
If you are paid weekly
Your paychecks will show a $75.00 deduction each.
If you have any questions or issues you can always reach our support team by
clicking the blue circle bb chat bubble
Located at the lower right corner of your benefitbay™ screen.