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Introducing a new type of health insurance plan for your employees…

The Individual Coverage Health Reimbursement Arrangement: ICHRA (pronounced “ick-rah”)

ICHRA is the next generation of employer-sponsored healthcare coverage. For the first time, employers of any size can reimburse employees for major medical and Medicare premiums on a tax-advantaged basis with no caps on the reimbursement amount.

Employers can now more accurately define the expense of employee healthcare and eliminate the erratic renewal cost increases associated with claims experience in the group health market.

Employers can save money by converting from a traditional group health insurance plan to an ICHRA.

The Departments of Treasury, Labor and Health & Human Services estimate that 800,000 employers will offer
an ICHRA by the end of the year 2025 insuring 11,000,000 individuals

Benefits of the ICHRA Method

  • Budget friendly – predictable costs, less volatile than traditional group insurance
  • No more difficult and complex decisions at renewal time – less onerous planning process
  • No minimum employee participation requirements
  • Flexibility among employee classes
  • Be fully compliant with all ACA mandates and avoid ACA penalties
  • Employees select a plan that fits their own needs – from deductibles to doctors, employees decide what’s right for them
  • Employees select a plan that fits their monthly budget
  • Employees continue to benefit from the tax advantages they have today just like traditional group health insurance
  • Portability – employees may keep their policy if they retire or change jobs

Here’s How it Works

Here’s How it Works


Employer defines contribution limits and employee eligibility requirements aligned with their culture and budget.


Employee purchases a qualified individual or Medicare insurance policy specific to their personal needs.


Employees are reimbursed for their premium expense in the amount determined by the employer in the plan design.