Individual Coverage Health Reimbursement Arrangement (ICHRA)
Great Flexibility for Employees and Employers
What is an Individual Coverage Health Reimbursement Arrangement (ICHRA)?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a type of employer-sponsored health benefit that allows businesses to reimburse employees for individual health insurance premiums and qualified medical expenses. Unlike traditional group health plans, ICHRAs offer greater flexibility for both employers and employees.
How Does an ICHRA Work?
An employer establishes a specific amount of money that can be reimbursed to employees for individual health insurance premiums and qualified medical expenses. Employees are free to choose their own health insurance plan from the individual market.
Benefits of ICHRAs
ICHRA Eligibility and Requirements
To be eligible for an ICHRA, an employee must:
ICHRA vs. Traditional Group Health Plans
Unlike traditional group health plans, ICHRAs offer more flexibility for both employers and employees. Employers can tailor the plan to their specific needs, while employees have greater choice in selecting their health insurance coverage.
Contact us today to learn more about how ICHRAs can benefit your business and employees.
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a type of employer-sponsored health benefit that allows businesses to reimburse employees for individual health insurance premiums and qualified medical expenses. Unlike traditional group health plans, ICHRAs offer greater flexibility for both employers and employees.
How Does an ICHRA Work?
An employer establishes a specific amount of money that can be reimbursed to employees for individual health insurance premiums and qualified medical expenses. Employees are free to choose their own health insurance plan from the individual market.
Benefits of ICHRAs
- Flexibility: Employees have the freedom to choose their own health insurance plan.
- Cost-savings: Employers can potentially reduce healthcare costs by offering ICHRAs.
- Customization: Employers can design ICHRAs to meet the specific needs of their workforce.
- Tax advantages: Reimbursements are tax-free for employees.
ICHRA Eligibility and Requirements
To be eligible for an ICHRA, an employee must:
- Be eligible to enroll in individual health insurance coverage.
- Enroll in a minimum essential coverage (MEC) health plan.
- Comply with any specific plan requirements set by the employer.
ICHRA vs. Traditional Group Health Plans
Unlike traditional group health plans, ICHRAs offer more flexibility for both employers and employees. Employers can tailor the plan to their specific needs, while employees have greater choice in selecting their health insurance coverage.
Contact us today to learn more about how ICHRAs can benefit your business and employees.
