ICHRA Administration Software

What is ICHRA

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.

ICHRA 101

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. Cost Control

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

2. Customization & Flexibility

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

3. Employee Retention & Attraction

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

4. Administrative Simplicity

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

5. Compliance & Regulatory Advantages

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

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How ICHRA Works

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

  1. Employers determine a tax-free, fixed dollar reimbursement limit and eligible expenses.
  2. Employees use the funds to buy healthcare services including individual health coverage.
  3. Employers reimburse employees up to the available allowance amount OR employers pay their premiums via ACH or virtual debit card.