Understanding Individual Coverage Health Reimbursement Arrangement

An ICHRA is an employer-funded account that allows for tax-free contributions to reimburse employees for eligible medical expenses—including individual health insurance premiums. It’s a modern approach to providing health benefits, offering flexibility for employees while allowing employers to better manage costs.

Why Consider an ICHRA for Your Business?

Employers might find ICHRAs especially appealing if they are:

• Looking to save on health insurance costs
• Struggling to meet participation requirements tied to traditional group plans
• Interested in exploring tax-saving opportunities
• Wanting to offer employees the flexibility to choose their own health plans

ICHRA’s offer benefits (outside of the actual health insurance) for the employer and employees.

Employer benefits include:

• You get to set the contribution amount each year
• Administration is easy

Employee benefits include:

• Each employee gets to choose the health insurance plan that is right for them and their family
• Employees have the opportunity to save money and get access to discounts through our preferred carrier

Tax savings:

Employers and employees may save additional taxes/costs through payroll deduction

Contributions are a deductible expense for employers

Contributions are excluded from the employee’s gross income and are not taxable