ICHRA is changing the way employers think about insurance.
ICHRA in Simple Terms
Instead of purchasing insurance for their employees, employers reimburse their employees for the insurance they purchase.
Employers determine how much they want to give employees for this benefit
Employees shop for and purchase the insurance plan on the ACA Marketplace
Employees submit qualified purchases for reimbursement
FYI: ICHRA Meets ACA Requirements!
The ACA requires employers with 50 or more employees to offer their staff health insurance. ICHRA can help meet the requirement.
We’ll work with you and your employers to ensure employees get the right amount of coverage to meet this requirement.
The Best Part
Advantages That Your Employers Will Want to Know About
ICHRA may be new to the market, but it sure has some significant advantages that your employers will want to know about.
We believe ICHRA is really the future of group insurance plans, and we hope you feel the same after taking a look at this comparison.
The best part, employers can use hybrid models to get the best benefits of ICHRA and traditional group policies.
| Category | ICHRA | Group | QSEHRA | |||
|---|---|---|---|---|---|---|
| Employee Size Restrictions | ✓ |
No restrictions | X |
No restrictions, very expensive for small employers | X |
Only available to companies with fewer than 50 employees |
| Premium Costs | ✓ |
ACA Premiums have stayed stable or decreased slightly for the last three years | X |
Employer-sponsored health insurance increased by 4% last year and 22% in the last five years | ✓ |
ACA Premiums have stayed stable or decreased slightly for the last three years |
| ICHRA/Employer Taxes | ✓ |
100% tax-deductible as ordinary business expenses, on both state and federal income taxes | ✓ |
100% tax-deductible as ordinary business expenses, on both state and federal income taxes | ✓ |
100% tax-deductible as ordinary business expenses, on both state and federal income taxes |
| Additional Medical Expenses | ✓ |
Employers determine what items on IRS Publication 502 they would like to reimburse | X |
All medical expenses not covered by the insurance plan are paid for by the employee | ✓ |
Employers determine what items on IRS Publication 502 they would like to reimburse |
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