Support your team with tax-advantaged reimbursements for their individual health insurance plans.
An Individual Coverage Health Reimbursement Arrangement, also known as an ICHRA, gives your business the ability to reimburse employees for individual health insurance costs. Instead of offering a one-size-fits-all group plan, ICHRA allows each team member to enroll in tailored coverage that meets their personal healthcare and financial needs.This tax-advantaged solution is ideal for employers seeking customizable structures, multi-location businesses, and Applicable Large Employers (ALEs) meeting ACA coverage requirements. It offers a scalable approach to managing costs while ensuring consistent support for every employee, regardless of location.
Why employers choose ICHRA.
- Reimbursements are tax-free for both the employer and the employee.
- Structure can work for businesses of any size.
- Employees enroll in their own individual or family ACA-compliant plans.
- Employers choose how much to contribute each month.
- Supports full-time, part-time, seasonal, or remote workers.
- Keeps your company ACA-compliant while offering more budget flexibility.
Understanding ICHRA employee classes: customize your health reimbursement strategy.
An Individual Coverage HRA (ICHRA) is a type of health reimbursement arrangement that allows employers to offer tax-free contributions to employees for individual health insurance premiums and eligible medical expenses, rather than paying for a traditional group plan. Employers set monthly contribution amounts and can vary them by compliant classes such as location, job type, or full-time status—providing flexibility to align with each company’s size and budget. With an ICHRA, employees gain more choice, and employers gain more predictable budget control.
How YourMedPlan supports your ICHRA strategy.
YourMedPlan works directly with employers to design an ICHRA program that meets your financial goals and ensures compliance with federal requirements. Once implemented, our licensed advisors guide each employee to enroll in tailored coverage and use their monthly reimbursement effectively. We provide one-on-one support during Open Enrollment and throughout the policy year, so your team always knows where to turn for health insurance assistance.
Ready to learn how ICHRA could work for your business? Get in touch today.
Frequently Asked Questions about Individual Coverage HRAs
What is an Individual Coverage HRA?
An Individual Coverage HRA is a health reimbursement arrangement that allows employers to reimburse employees for individual health insurance plans and certain medical expenses.
Who can offer an ICHRA?
Any employer can offer an ICHRA, regardless of business size. There is no minimum or maximum number of employees required.
Do employees lose their premium tax credit with an ICHRA?
Employees who accept an ICHRA must waive their premium tax credits if the ICHRA is considered affordable. If the ICHRA is not affordable, they may decline it and keep their tax credit. YourMedPlan will assist employers with affordability and assess any premium tax credits for employees.
What types of insurance qualify under ICHRA?
Employees must purchase an individual major medical plan that meets Affordable Care Act standards. Short-term or limited-benefit plans do not qualify. YourMedPlan can assist with ensuring your employees are covered and compliant.
Can employers vary contributions by employee?
Yes, employers can vary contribution amounts by employee class, but they must apply the same rules to everyone within that class. YourMedPlan will assist with structure compliance.
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