What is ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a type of health benefit plan established by employers to provide financial assistance to employees for their individual health insurance premiums and eligible medical expenses. Unlike traditional group health plans, ICHRA empowers employees to choose their own health insurance coverage.
How Does ICHRA Work?
The employer establishes an ICHRA program and determines the annual allowance they will provide to each eligible employee.
Employees can shop for and choose an individual health insurance plan that suits their needs. We can help make sure you choose the right plan.
Three Key Benefits of ICHRA
1. Customization: ICHRA gives employees the freedom to select a health plan that aligns with their unique needs, lifestyle, budget and preferences.
2. Cost Control: Employers can set a budget for healthcare benefits, knowing their expenses, and their employees’ won’t fluctuate with premium changes.
3. Portability: Employees can take their ICHRA benefits with them if they change jobs, providing continuity of coverage.
