ICHRAs

In today's ever-changing healthcare landscape, finding the right balance between cost and coverage is a challenge for employers of all sizes. An Individual Coverage Health Reimbursement Arrangement (ICHRA) is an innovative solution that public sector organizations are adopting as an alternative to traditional group health plans.

What Is an ICHRA?

An ICHRA is an employer-funded benefit that allows employees to select individual health insurance plans, providing them with more affordable and personalized options through the individual market or Medicare. With ICHRA funds, employees can cover their health insurance premiums tax-free.

Employers have the flexibility to offer ICHRAs to any class of employees and can contribute any amount they choose. Additionally, ICHRAs can cover a range of medical expenses, including insurance premiums and Medicare premiums, as defined by the plan's terms.

Why Choose ICHRAs?

This innovative approach empowers employers to manage risks, stabilize budgets, and offer tailored healthcare benefits that align with their employees' unique needs. It also encourages employees to take charge of their health decisions, boosting health literacy and overall well-being.

Employer Advantages

• Can be offered by employers of any size, and to all or a subset of employees
• Simplified administration with an ICHRA vs. a group health plan
• Set affordable contribution limits and only reimburse actual claims, keeping you within budget
• An ICHRA can meet the Affordable Care Act’s essential coverage requirement (for applicable large employers) and help avoid penalties
• ICHRAs offer tax advantages by excluding reimbursements from employees' taxable wages, extending the tax benefits of traditional group health plans to individual health insurance premiums

Employee Advantages

• Employees can shop for affordable, more personalized coverage through the individual health insurance market and use their ICHRA funds to pay for all or part of their health insurance premiums
• Uninsured employees including part-time, remote, or seasonal workers may be eligible for coverage under an ICHRA
• Coverage is portable and coverage can be kept even if the employee switches jobs
• Employees receive enrollment assistance, seamless onboarding, and ongoing post-enrollment support