ICHRA (pronounced like “ick-rah) stands for Individual Coverage Health Reimbursement Arrangement.
Announced in 2019, ICHRA is the newest type of HRA and it allows employers to provide different reimbursement amounts to multiple classes of employees (i.e., full-time and part-time employees or employees in different states). Employees can then buy individual health plans in their own markets and submit claims for reimbursement of healthcare expenses. Employers get to keep any reimbursement funds that aren’t used.
In general, ICHRAs are ideal for employers that plan to grow beyond the 50-employee threshold, that wish to provide higher limits than those allowed by QSEHRAs, that want to provide dental and vision benefits in addition to health benefits, and/or that want to offer a group health plan in addition to their reimbursement plan.
Watch the next video for a side-by-side comparison between QSEHRAs and ICHRAs, or explore the resources below for more information: