A smarter way to offer health benefits
An Individual Coverage HRA lets you support your team's health coverage on a fixed budget while employees choose the plan that fits them. We handle setup, compliance, and enrollment end to end.
The benefits of going with ICHRA
Group plans are expensive and rigid. ICHRA flips the model: you control the budget, your people choose the coverage.
Predictable costs
Set a fixed monthly allowance per employee and reimburse tax-free. No surprise renewal hikes, no over-buying.
Real choice for staff
Employees pick the plan and doctors that fit their lives instead of a one-size-fits-all group plan.
Works at any size
From a team of two to hundreds, ICHRA scales cleanly, with no participation-rate minimums to hit.
Tax-advantaged
Reimbursements are free of payroll tax for you and income tax for employees, when set up correctly.
Compliance handled
We manage the plan documents, notices, and substantiation so you stay on the right side of the rules.
Flexible classes
Offer different allowances to different employee classes, full-time, part-time, seasonal, by location.
Traditional group plan vs. ICHRA
Traditional group plan
- Premiums rise every renewal
- One plan everyone must accept
- Participation minimums to hit
- You absorb the cost of claims
- Locked in for the year
ICHRA
- You set a fixed, predictable budget
- Each employee picks their own plan
- No participation requirements
- Costs never exceed your allowance
- Adjust allowances as you grow
Three steps to a modern benefit
Set your budget
You decide the monthly reimbursement amount for each class of employees, you're always in control of the spend.
Employees choose
Your team shops the individual market and picks the plan that fits them. We guide each employee through it.
Reimburse tax-free
Employees submit proof of coverage, you reimburse up to their allowance, and everyone keeps the tax advantage.
What employers ask us about ICHRA
An Individual Coverage Health Reimbursement Arrangement lets an employer reimburse employees, tax-free, for individual health insurance they buy themselves, rather than sponsoring a traditional group plan. It became available in 2020 and has grown quickly with small and mid-sized employers.
It's more predictable, which usually means lower and more controllable costs. You set a fixed allowance instead of being exposed to a group plan's annual premium increases. Whether it saves money depends on your team, and we'll model it with you before you commit.
Very little on your end once it's set up, that's what we handle. We take care of plan documents, required employee notices, and the reimbursement substantiation process so you don't have to become a benefits expert.
Yes. Within IRS rules you can vary allowances by employee class (for example full-time vs. part-time, salaried vs. hourly, or by location) as long as you treat everyone in the same class consistently.
See if ICHRA fits your team
We'll model the numbers for your business and walk you through setup, no cost to explore your options.