ICHRA

ICHRA Now, more than ever, healthcare dollars need to go further. With an ICHRA, they can.

Through an Individual Coverage Health Reimbursement Arrangement (ICHRA), you receive tax-free money from your employer to help cover medical insurance premiums for insurance plans you purchase on the individual market. That means fewer out-of-pocket healthcare costs for you and more money in your pocket.

What is an Individual Coverage Health Reimbursement Arrangement (ICHRA)?

An ICHRA is a program that is fully funded by your employer and is designed to help you pay for your individually purchased medical insurance premiums.

How it Works Your employer put money into your ICHRA when you chose to waive coverage through the group medical insurance plan, are not covered under your spouse's or parents' insurance plan(s), and you do not have received any tax stipend through the Affordable Care Act for your insurance premium. If you meet those requirements, your employer will contribute their set contribution amount towards your monthly premium bill. Because the money contributed by your employer doesn’t count as income, there are no tax implications. It’s kind of like getting a raise. Check with your Human Resources department or Plan Administrator for more information about your plan design.

Do I have to have health insurance to have an ICHRA? Yes, to receive the monthly contribution from your employer toward your ICHRA, you must have medical insurance purchased on the private market. If you have medical insurance through your employer or your spouse’s employer, you cannot participate in the ICHRA. How do I know how much it contributed to my HRA each plan year?

At the beginning of each plan year, your employer will notify you of the amount they will contribute to your ICHRA for that plan year.

Do I need to enroll in each plan period?

Yes. All eligible employees must enroll each year during the open enrollment period. Your employer will instruct you on how to complete enrollment.