Individual Coverage Health Reimbursement Arrangement

Employers and employees are struggling with the raising costs of group health insurance plans, a solution may be an Individual Health Reimbursement Arrangement (ICHRA). An ICHRA allows employers to pay all or part of an employee’s individual health insurance with non-taxed dollars. The way it works, is that employees purchase a health insurance plan on the Federal marketplace, submits prove of coverage to their employer, and the employer reimburses the employee the agreed upon amount. There are several advantages to an ICHRA vs a group health insurance plan,  1. an ICHRA can satisfies the large employer (over 50 employees) requirement to offer affordable health insurance to their employees 2. employees can choose the health plan that meets their specific needs and there is no participation requirement like group health plans 3. employers can set a reimbursement amount that meets their budget demands.