What Is a Company-Funded ICHRA Health Benefit?

A company-funded health benefit known as an ICHRA (Individual Coverage Health Reimbursement Arrangement) reimburses employees for healthcare expenses. Unlike a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), the ICHRA is open to all organizations. Since 2020, business owners have had access to ICHRAs.

Employees can be reimbursed tax-free for the cost of their individual health insurance premiums and other healthcare expenses by both large and small enterprises, as well as organizations, churches, and other employers.

An ICHRA is a technique to recruit top personnel and can be used as a standalone benefit or in conjunction with normal small group insurance as part of your company’s benefit program. In this scenario, the corporation offers a modest group insurance plan to some employees and an ICHRA to others.

Companies Using An ICHRA Strategy For Employee Benefits