An individual coverage health reimbursement arrangement (ICHRA) lets an employer give employees a tax-free allowance to buy their own individual health insurance.
How it works
- The employer sets a monthly allowance, which can differ by employee class (for example full-time vs. part-time) and by age within set rules.
- Employees choose an individual plan on or off the marketplace.
- The employer reimburses premiums, and often other medical costs, up to the allowance.
Licensed agents compare plans from several carriers, check your doctors and estimate your subsidy. Free to you.
Call 866-645-8540Why employers like it
Costs are predictable, there's no minimum participation requirement, and it works for businesses of any size.
What employees should know
Employees must have individual health coverage to use the allowance. If the ICHRA is considered affordable under IRS rules, they can't also get a premium tax credit. If it isn't affordable, they can turn it down and may qualify for a credit instead.
Getting set up
ICHRAs come with notice and documentation requirements. A benefits broker or administrator can handle setup and help employees choose plans.
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