What is an ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to reimburse employees tax-free for individual health insurance premiums and qualified medical expenses—customized to fit diverse workforce needs.
Key Features:
Tax-Free Reimbursements
No Contribution Limits
Flexible Employee Classes
Covers Premiums & Expenses
Employer-Funded
No Group Plan Required
FAQ
Who can offer an ICHRA?
Any employer of any size can establish an ICHRA and set their own reimbursement amounts and eligibility classes.
What expenses are reimbursed?
ICHRA can reimburse individual health insurance premiums and other qualified medical expenses, depending on plan design.
Can employees choose their own plan?
Yes, employees purchase individual insurance that meets their needs, and submit receipts for reimbursement from the ICHRA.
Are ICHRA reimbursements taxable?
No, reimbursements for qualified expenses are tax-free for both employer and employee when used correctly.