About ICHRA

ICHRA 101

ICHRA is a relatively new healthcare solution that supports the diverse needs of today’s workforce. It’s a way for businesses to offer group health coverage without the restriction of a group health plan.

Advantages for Employers

ICHRAs are a great option for businesses to provide health insurance coverage for their employees. Most importantly, ICHRAs were designed to give more types of employees access to health care.

  1. 1
    Cost Control

    ICHRAs allow employers to establish a fixed healthcare budget, providing cost control and financial stability.

  2. 2
    Customization & Flexibility

    Employers can customize ICHRA plans to meet individual employee needs, offering flexibility and diverse coverage options.

  3. 3
    Employee Retention & Attraction

    Personalized health insurance choices contribute to higher job satisfaction, employee loyalty and aiding in recruitment efforts.

  4. 4
    Administrative Simplicity

    ICHRAs are easier to administer than traditional group health plans, reducing the administrative burden on HR teams.

  5. 5
    Compliance & Regulatory Advantages

    ICHRAs offer a compliant solution, helping employers navigate health insurance regulations and avoid penalties for non-compliance.

How ICHRA Works

Implementing an individual coverage health reimbursement arrangement requires many steps and decisions. This is typically how ICHRAs work:

  1. 1
    Setup

    Employers determine a tax-free, fixed dollar reimbursement limit and eligible expenses.

  2. 2
    Selection

    Employees use the funds to buy healthcare services including individual health coverage.

  3. 3
    Reimbursement

    Employers reimburse employees up to the available allowance amount OR employers pay their premiums via ACH or virtual debit card.