Switching a client's ICHRA from another provider to StretchDollar

For brokers: this guide is written for your client, the employer. Share it with clients you're moving to StretchDollar from another ICHRA administrator, and see Moving your agency's ICHRA work off spreadsheets for your side of the setup.

Already offering an ICHRA through another administrator? You can move it to StretchDollar without your employees changing their health plans. This guide covers when to switch, what to gather, the steps, and how to hand over from your old provider so nobody is paid twice or missed.

The short version

• Your employees keep their current individual health plans. They don't need to re-shop. They just upload proof of the coverage they already have.
• You pick a start date on the 1st of any of the next five months.
• Your old provider pays reimbursements up to that date, and StretchDollar pays from that date on.
• Reimbursements go by ACH from your business bank account straight to each employee's bank. There's no card or payroll deduction.
• Price: $100 a month plus $25 per enrolled employee, with no setup or cancellation fees. See How much does StretchDollar cost?

When to switch

• At your renewal (often January 1) is the simplest time. Allowances and employee notices line up with the new plan year. StretchDollar plan years run on the calendar year, ending December 31.
• Mid-year works too. Pick the 1st of a month right after the last month your current provider reimburses.
• Check your current contract for notice periods or cancellation terms before you choose a date.
• Give employees notice before the start date. StretchDollar creates each employee's ICHRA notice for you. The timing rules (generally 90 days before a new plan year) can depend on your situation, so tell us your date and we'll help you plan it.

What to gather from your current provider

• Your employee list (census) with each employee's details and class (for example, full-time or part-time). Your broker or our team can send you the template.
• Your current allowances by employee class, and any extra for dependents.
• Your waiting period for new hires.
• The last month your current provider will reimburse.
• How employees pay their insurance company today. For example, does your provider pay the carrier or use a benefits card? See Hand over from your old provider below.

How to switch

1. Get a quote. If you work with a broker, they can build it in our quoting tool from your census. Or sign up directly and build your policy. Match your current allowances so employees see no change.
2. Sign up and set your policy. Confirm your business details, policy and start date, and add a card for StretchDollar's monthly fee. See Building your flat-rate ICHRA policy.
3. Verify your business and connect your bank. Complete Account Setup and Bank Setup with your business checking account. Start early, because verification can take a few days.
4. Invite your employees. Each one:
   • creates their account;
   • chooses to keep their current plan;
   • uploads proof of coverage;
   • connects their bank;
   • sets up auto-reimbursement.
5. See I already have a marketplace plan. Do I need to re-shop?
6. Approve reimbursements by the 25th. Approved auto-reimbursements are withdrawn from your account on the 25th and reach employees around the 1st. See The 25th cutoff.

Hand over from your old provider

This is where most switching problems happen, so plan these before your start date:

• Agree the last month your old provider pays. StretchDollar starts the month after, so nothing is paid twice or missed.
• If your provider pays the insurance company for employees or uses a benefits card, each employee must set up their own payment with their insurer before their first premium under StretchDollar is due. Autopay from their own bank account or card works well. With StretchDollar, employees pay their insurer as usual and we reimburse them.
• Stop payroll deductions or payroll reimbursements tied to your old ICHRA from the day before your start date.
• Download your records (notices, plan documents, reimbursement history) from your old provider before your access ends.
• Cancel your old provider once your final month has been paid, following their terms.

Common questions

Do my employees need new health plans?

No. ICHRA reimburses individual plans, and those stay with your employees when you switch administrators. They upload proof of the plan they already have.

Can I keep my broker?

Yes. Your broker can work with you on StretchDollar and stay agent of record on your employees' plans. See Working with a brokerage or partner.

Can I change our allowances when we switch?

Yes. You set your allowances when you build your policy on StretchDollar. After your plan starts, changes during the plan year are limited. See Can I change the benefit allowance during the plan year?

What if an employee's reimbursement for the first month is late?

Months before an employee's auto-reimbursement was approved can be paid through a one-time reimbursement, so no month is lost.

What about tax reporting?

StretchDollar provides your 1095-B data for the months we administer. Your old provider covers the months before your start date. See What tax reporting is required?

Planning a switch? Ask in the help window or book a call, and we'll help you pick the right start date.