What is an ICHRA?
An ICHRA is an Individual Coverage Health Reimbursement Arrangement. This gives employers an advantage of providing tailored health insurance benefits to their employees.
ICHRAs are an alternative to group health insurance plans, as it is employer-funded. This can apply towards health insurance premiums and reimbursements for out-of-pocket medical expenses.
For more information you can visit healthcare.gov
ICHRA Employer Benefits
There are many advantages in choosing an ICHRA for your business, one of the more prominent being that it offers the employer financial control. The employer determines the amount they would like to contribute.
Tax Benefits
All employee contributions are 100% tax deductible
Fixed Costs
Unlike group benefits, this offers more control over your budget by offering a fixed cost
No minimum participation required
As the employer, you set the eligibility requirements for your employees
No minimum contribution amount
The amount contributed to each employee is determined by the employer
Reduced emplyee turnover
ICHRAs provide a benefit to the employees, which help your employee turnover
Low maintenance health plans
Employers no longer have to manage the health plans, renewals, or meet participation rates