Here’s How it Works
Plan Design:
One size doesn’t fit all
One of the many advantages of an ICHRA is that it can be customized to fit your culture and budget. While flexible, there are several important rules to follow so your plan complies with the ICHRA regulations.
- ICHRA reimbursement must be offered fairly to all employees to satisfy Section 105(h) Nondiscrimination Rules
- Applicable Large Employers must ensure plan affordability if they want to avoid Employer Shared Responsibility Penalties
- Employers must not offer a choice between an ICHRA and a group health plan to any “Class” of employee; employers may offer an ICHRA to one or more of the approved Classes and a group plan to other Classes
- Employers must use reasonable procedures to substantiate that employees are enrolled in a qualified individual medical or Medicare plan in order to reimburse an employee
Sounds complex – but don’t worry – ezICHRA has you covered! Unlike some models that require you to use self-service tools and create your own plan design, the ezICHRA team will be with you every step of the way and design a fully-compliant plan for you to fit your culture and budget.
Allowable ICHRA Classes
- Full-time employees
- Part-time employees
- Seasonal employees
- Salaried employees
- Hourly employees
- Employees working in same geographic location
- Union employees
- Waiting periods
- Non-resident aliens
- Some temporary employees
- Combination of classes
- Minimum class sizes apply