ICHRA
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a customizable structure for employers of any size. YourMedPlan helps business owners define employee classes, and contribution amounts, then guides each employee through individual enrollment.
Best Fit For:
Multi-state or growing companies, employers seeking tailored structures, or Applicable Large Employers (ALEs) meeting ACA coverage requirements.
QSEHRA
A Qualified Small Employer Health Arrangement (QSEHRA) is a tax-free model for small and mid-sized businesses. YourMedPlan works with employers to implement a compliant contribution structure and guides employees through individual plan enrollment.
Best Fit For:
Companies with less than 50 full-time equivalent employees (FTEs) seeking a tax-advantaged structure without the volatile costs and administrative burden of a formal group plan.
Post-Tax Stipend
With the post-tax stipend structure, business owners contribute financially towards their team’s
health insurance while maintaining the individual’s federal subsidy eligibility, which can reach up
to $700 per month.
Best Fit For:
Startups with limited benefits budgets, companies with 1099 contractors or part-time workforces, and teams with high federal subsidy eligibility.
Traditional Group
Traditional group plans are typically a familiar, tax advantaged health insurance structure with bundled medical, dental, and vision through one carrier, paid directly by the employer.
Best Fit For:
Companies with 20+ full-time equivalent employees (FTEs) located in the same state, and the budget to offer robust, turnkey plans.
Scalable Insurance Solutions
For Associations, Franchises, & Member Groups
YourMedPlan powers smarter employee benefits for independent businesses, franchise owners, associations and member groups, multi-state employers, startups, and nonprofits. We’re proud to support organizations with tailored health insurance solutions for members.
Employer Solutions:
Frequently Asked Questions
What is the difference between QSEHRA, ICHRA, and a traditional group health plan?
The main difference between these three options is how health insurance is structured and funded. A QSEHRA is for small employers and offers a uniform, tax-free reimbursement to all full-time eligible employees for their individual health insurance costs. An ICHRA allows employers of any size to offer tax-free reimbursements for employees’ health insurance costs, but with more structure flexibility by employee class. A traditional group health insurance plan involves the employer offering a comprehensive health insurance package for the team, typically with skyrocketing premium costs and less structure flexibility than the QSEHRA or ICHRA.
Does a health insurance stipend meet ACA compliance for Applicable Large Employers?
No, a health insurance stipend alone does not satisfy ACA compliance for Applicable Large Employers (ALEs). While stipends offer flexibility and allow employees to retain federal subsidies, they are treated as taxable income and are not considered an official offer of coverage. ALEs must offer affordable, minimum-value health coverage to 95% of full-time eligible employees to avoid ACA penalties. Only structured options such as an ICHRA or a traditional group health plan meet this requirement. YourMedPlan can guide ALEs to ACA-compliant solutions that align with their workforce and budget.
What are federal subsidies, and how do my employees qualify?
Federal subsidies, or premium tax credits, help lower the cost of individual health insurance purchased on the ACA Marketplace. Eligibility is based on factors such as household income, family size, and plan affordability. Employees may qualify for these subsidies if they do not have access to affordable employer-sponsored coverage. Offering a QSEHRA or ICHRA may have an impact on subsidy eligibility, depending on affordability standards. YourMedPlan helps employees assess subsidy eligibility and navigate Marketplace enrollment with personalized support.
Can I offer health insurance support to 1099 contractors or part-time workers?
Yes, you can offer support to 1099 contractors and part-time workers using a post-tax health stipend. Stipends are flexible and not restricted by IRS rules like QSEHRA or ICHRA, making them ideal for supporting non-traditional workers. They are taxable and cannot be conditioned on health plan enrollment, but still provide financial assistance. YourMedPlan helps employers design compliant, contractor-friendly health support solutions that avoid triggering ERISA or ACA group plan rules.
Can I offer a traditional group major medical or ancillary health plan alongside an HRA?
You can offer a traditional group medical plan to one class of employees and an ICHRA to another but cannot offer both to the same class. Bundled ancillary benefits such as dental, vision, or disability insurance can be offered alongside an HRA if regulations are followed. YourMedPlan ensures HRA structures are compliant and integrated effectively with any existing group offerings.
What is considered an affordable health insurance plan under the ACA?
Under the ACA, a health insurance plan is considered affordable if the employee’s cost for self-only coverage does not exceed 9.02% of their household income (2025 rate). Employers can use IRS safe harbors like W-2 wages to determine this threshold. For ALEs, offering an affordable plan helps avoid penalties. YourMedPlan calculates affordability for employers and ensures compliance when implementing group plans or ICHRAs.
Can employees still qualify for federal subsidies if I offer an HRA structure?
Employees may still qualify for federal subsidies if the HRA is deemed unaffordable. However, if the HRA (such as ICHRA or QSEHRA) is affordable, they are not eligible for premium tax credits. YourMedPlan helps evaluate affordability and advises on structuring HRAs to maximize value while minimizing subsidy conflicts.
Can I switch to a different health insurance solution mid-year?
Yes, you can switch health insurance solutions mid-year. Options like QSEHRA and ICHRA trigger a 60-day Special Enrollment Period (SEP), allowing employees to enroll in new coverage. YourMedPlan supports seamless transitions, ensuring compliance and employee coverage continuity.
Do I have to offer the same health insurance contributions to all employees?
It depends on the model. QSEHRA requires the same contribution for all full-time eligible employees, with differences allowed only for single vs. family status. ICHRA allows differentiated contributions by employee class (e.g., full-time vs part-time, geographic location). Post-tax stipends also allow flexible contribution design. YourMedPlan helps employers implement compliant contribution strategies based on the benefit structure chosen.