Introducing ICHRA Health Insurance for Small Business
ICHRAs: Empowering your employees to be able to choose the healthcare that fits, while we handle the rest. Click below to get a consult on how you can integrate ICHRA health insurance into your small business offerings!
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ICHRAs: Your Health, Your Choice, Our Support.
ICHRAs are a type of employer funded HRA provided to employees as a means to purchase individual health insurance rather than offering a group health plan. Employees can shop for affordable, more personalized individual/family health insurance plans through The CBC Health Insurance Marketplace for Costco members and use their ICHRA funds to pay for part or all of their health insurance premiums. ICHRAs can be offered by employers of any size, to all or a subset of employees based on defined classes and class rules. There’s no limit on how much an employer can contribute. They were introduced at the beginning of 2020 as a response to regulations within the Affordable Care Act (ACA), which when signed into law in 2010 placed limits on the use of Health Reimbursement Accounts (HRAs). These limits included preventing employers from integrating their accounts with individual health coverage. ICHRAs specifically address that by allowing HRAs to be integrated with individual health insurance.
The CBC Health Insurance Marketplace for Costco members is your resource for everything ICHRA:
ICHRA Setup Assistance
Setting up an Individual coverage Health Reimbursement Arrangement (ICHRA) can be complex, but our ICHRA setup assistance and support services simplify the process. We provide step-by-step guidance, from plan design to managing compliance, ensuring a seamless implementation.
ICHRA Administration
Our sister company, Control Source administers your ICHRA and will assist you in managing or making changes to your ICHRA Health Insurance offerings, making it easy to unlock the full potential of your ICHRA benefits.
Enrollment Assistance
We work with each of your eligible employees to help them pick and enroll in an individual/family health insurance plan that best fits their needs. Our expert team is here to answer questions, offer personalized advice, and support both employers and employees |
How do ICHRAs work?
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Why ICHRAs are a winning solution for employees
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ICHRA Health Insurance
Is an ICHRA right for your small business?If you have any of the following challenges with traditional small business health insurance plans, an ICHRA plan might be the right option for you and your employees.
You’ll bring predictability to your healthcare costsRunning a small business brings unique challenges. Margins can be tight, and the difference between being in the red and being in the black can be razor thin. ICHRAs give you the opportunity to provide healthcare to your employees while keeping costs predictable and easy to budget. You’ll save time in your administrationICHRAs reduce the time you spend on administration because, instead of managing a group health plan, our sister company, Control Source will be administering your small group’s ICHRA. This allows you to focus more time and energy on growing your business. You can reduce the cost of employee turnoverWhen you have a smaller staff, the loss of an employee to another employer is felt deeply. And consider the time it takes to recruit, hire and train an employee at a small business. You need benefits that differentiate your business in recruitment and retention. This is especially challenging for small businesses. An ICHRA is a simple and more affordable way to provide employees with the support they need to cover healthcare costs. |
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ICHRA Health Insurance FAQs
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What is an ICHRA and how does it work?
AnswerAn Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to reimburse employees for individual health insurance premiums and other qualified medical expenses on a tax-free basis, giving employees the freedom to choose the health plan that best fits their needs. -
Who is eligible to participate in an ICHRA?
AnswerAny employee can be eligible for an ICHRA, but employers can design the plan to cover specific classes of employees, such as full-time, part-time, or seasonal workers. However, employees must obtain individual health insurance coverage to participate. -
What expenses are eligible for reimbursement under an ICHRA?
AnswerICHRA funds can be used to reimburse premiums for individual health insurance, Medicare, and, in some cases, out-of-pocket medical expenses such as copays, prescriptions, and deductibles, depending on the plan design. -
How does ICHRA differ from a traditional group health plan?
AnswerUnlike traditional group health plans, ICHRA allows employees to choose their own individual health insurance plan. It offers more flexibility, as it can cater to diverse employee needs and doesn’t require a one-size-fits-all solution. -
Can employees still receive premium tax credits if they participate in an ICHRA?
AnswerEmployees who are offered an ICHRA cannot also receive premium tax credits for individual marketplace insurance, unless the ICHRA is deemed unaffordable. In such cases, the employee can opt out of the ICHRA and claim the tax credit instead. -
What are the compliance requirements for employers offering ICHRA?
AnswerEmployers must ensure that their ICHRA meets certain requirements, such as providing a formal notice to employees, adhering to nondiscrimination rules, and verifying that participating employees have qualifying health coverage. -
Can an ICHRA be offered alongside a traditional group health plan?
AnswerYes, employers can offer an ICHRA alongside a traditional group health plan, but they must be offered to different classes of employees, ensuring that employees in one class are not offered both options simultaneously.