Attention sponsors of group medical plans: Would you like to get out of the group business?
The ICHRA, an alternative to Group Health Insurance that meets the requirements of the Affordable Care Act (employer mandate).
Rather than tie employer contributions to a group health plan, the ICHRA, or Individual Coverage HRA, allows employers to make pre-determined monthly contributions that employees can use to pay for qualified medical expenses, including individual insurance coverage or Medicare.
Some advantages of sponsoring an ICHRA:
- Employees have the opportunity to choose a health plan and carrier that works best for them
- Employers determine eligibility, and even part-time employees can participate
- Employers set health expense budget*
- Any employer size qualifies, no minimum size group
*By participating in an ICHRA, employees will no longer qualify for premium tax credits through Healthcare.gov, unless the allowance provided is considered “unaffordable,” then the employee can opt out of the ICHRA and take the premium tax credit. We provide guidance to make certain you set contribution amounts that are “affordable” and help you to avoid negatively impacting your lower income employees.
