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Three Years After Executive Order, Harmful ICHRA Policy Remains

 

February 5, 2024

Three years after directing his Administration to review the deeply flawed Individual Coverage Health Reimbursement Arrangements (ICHRA) policy, President Biden and his Administration have yet to act. Meanwhile, some reports indicate that ICHRA use is growing at a concerning rate, while millions of private equity dollars flood the market. 

 

In January 2021, among his first acts in office, President Biden signed Executive Order (EO) 14009, which directed federal agencies to evaluate detrimental policies implemented by the Trump Administration that run counter to Biden’s health care priorities – specifically, ICHRAs.  

 

Also in that EO was a similar pledge to review the Trump expansion of Short-Term Limited Duration Insurance (STLDI), which severely diminishes the quality of health coverage for hardworking Americans and their families. Fortunately, President Biden rescinded STLDI last summer, strengthening our health care system and providing American families confidence in their coverage. Keep US Covered was pleased to see the President act. However, ICHRA is still a hindrance to the President’s health agenda and his efforts to further reduce health disparities.  

 

The ICHRA system invites discrimination in the workplace, risks damage to the ACA marketplace and weakens coverage options – or raises costs – for employees. Now, more than ever, President Biden should act to reverse this policy. Republicans’ recent efforts to codify the policy and as former President Trump pledges to renew his push to replace the Affordable Care Act if elected in November loom as threats to President Biden’s health policy progress. The goal of achieving health equity is under attack, with access to affordable, quality healthcare options at risk of being the first to go.  

 

Keep US Covered urges President Biden to make good on his promise and act to repeal the ICHRA policy. It’s time to ensure that every American is offered the high quality, affordable health care they deserve.  

To learn more about KUC and its partners’ work to educate policymakers on ICHRAs, STLDI, and the social determinants of health, visit KeepUSCovered.org or follow the campaign on Twitter and Facebook.


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