Introducing ICHRA Plans for 2021
Businesses of any size* can now offer employees the benefits of health insurance while saving money and enjoying tax advantages.
Individual Coverage Health Reimbursement Arrangements. ICHRA for short (phew!)
ICHRA plans (pronounced “ICK-rah”) give employers the ability to reimburse employees pre-tax for health insurance premiums and medical expenses.
Key Benefits of ICHRA
- Provides more flexibility to the employer who can choose the level of contribution and which class of employees qualify
- Provides choice to the employee: They no longer have to choose just one plan, and can shop for plans that fit their needs and budget best.
- Rates are individual market rates, meaning about 15-20% less than the typical group plan
- A robust Peak network
- Can be offered to full-time, seasonal, or part-time employees
- Contributions are pre-tax
Watch an ICHRA Primer Video
*Federal regulations dictate that businesses offering both ICHRA and traditional small group plans at the same time are subject to size requirements. Talk to your broker about these restrictions.
ICHRA plans will be available in all seven counties for the 2021 plan year. Rates and details will be announced soon!
- All reimbursements are tax-free
- To qualify, employee must fall within a designated class set by the employer and use reimbursement towards qualifying plans
- There is no minimum or maximum employer contribution limit
- Employers can divide employees into different classes and may offer different contribution amounts for each
- There is no minimum participation rate for ICHRA*
- Employers may offer other benefits like dental in addition to ICHRA
Tuesday, July 14, 10am, ICHRA Systems
Tuesday July 21, 10am, Take Command Health
Tuesday, July 28, 10am, People Keep
Click here to request an invitation
- Visit healthcare.gov/ichra
- Talk to your broker
- Reach out to us at 970-455-0381