What is ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a new type of reimbursement model that offers substantial flexibility to employers of all sizes. ICHRA contributions are fully funded with tax-free contributions by the employer to reimburse their employees for eligible medical expenses.
What makes an ICHRA unique is that the money can also be used by employees to pay for individual health insurance premiums. It’s a way for employers to reimburse their employees for insurance rather than buying it for them.
What Does ICHRA Offer?
- Simplified approach for employers overwhelmed by benefits administration
- Affordable and sustainable contributions
- Flexible coverage options for employees
- ICHRA contributions are tax deductible for employers
- Employers and employees may save additional taxes/costs through payroll deduction