ICHRA

    Game changing benefit solution for employers of all sizes

    What is ICHRA?

    Individual Coverage Health Reimbursement Arrangement (ICHRA) is an IRS-approved tax savings plan that gives employers a great alternative when it comes to providing health benefits. The ICHRA allows employers to reimburse employees tax-free for qualified insurance premiums or insurance premiums & non-insured medical expenses, offering a more personalized, account-based health benefit. With the ICHRA, EMPLOYERS HAVE THE ABILITY TO CHOSE TO OFFER TO ALL EMPLOYEES, OR TO SPECIFIC CLASSES, WITH NO CONTRIBUTION CAPS, TO FIT ANY BUDGET.

    Who is ICHRA for?

    Individual Coverage HRA is available to businesses of any size looking to streamline benefit options & cut costs without reducing value when it comes to health benefits for their employees.

    What are the benefits?

    Employer
    • Controlled Funding Limits. Employer has the freedom to create specific classes and to choose the level of reimbursement to each class.
    • No Size Restrictions. Available to employers of any size.
    • Employer Satisfaction. Attract & retain employees with an increased benefits package.
    • Tax Benefit. All reimbursements are 100% deductible as a business expense.
    • Savings. Save money by not providing a traditional group health plan to any or all employees.
    • Peace of Mind. Plan administration handled by BASE.
    Employee
    • Cost Savings. Employees now have additional money to help with the rising cost of health care.
    • No Taxes. All reimbursements are nontaxable.

    Quick Facts!

    • Employees must be enrolled in a qualified individual health insurance plan or Medicare
    • No contribution caps, meaning a higher benefit limit
    • Helps a business streamline benefit options & cut cost without reducing value for their employee benefits
    • Employers can reimburse individual premiums or individual premiums & non-insured medical expenses

    ICHRA Guidelines

    The Individual Coverage HRA is subject to the following guidelines (other limitations may apply):

    • The organization selects a plan design to reimburse individual health premiums or individual health premiums plus non-insured medical expenses.
    • The reimbursement amount must be the same for all eligible employees in a class, but may vary based on the number of employee dependents or age of employee.
    • Employees and dependents must be covered by individual health coverage or Medicare and must be verified at least once a year, and on each claim request.
    • Employers cannot offer a traditional group health insurance plan and the ICHRA to the same class of employees
    • Certain plan designs based on specific employee classes may require minimum participation and eligibility.
    • Specific 90 Day Notices are required to be distributed to each participant.
    • Employees participating in the ICHRA are FSA eligible, and the ICHRA can also be designed to be HSA compatible.
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    Choices

    Offering an ICHRA means employees can shop for personalized, individual insurance coverage that meets their needs.

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    Predictability

    The Individual Coverage HRA provides an opportunity to provide health care to employees while keeping costs predictable and easy to budget.

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    Necessary Plan Documents

    The necessary plan documents required by the IRS, DOL, ERISA, and the ACA will be created and customized to each business.

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    Flexible Contributions

    Allows employers to choose the best method for making contributions to employees' accounts using file imports or recurring contribution schedules.