ICHRA: Save Money on Your Business Health Insurance

You can offer your team affordable, real health insurance without breaking the bank. Consider the new flexible, tax-friendly program called ICHRA.

Let’s Start with Some Basics.

What is an ICHRA?

An ICHRA (pronounced “ICK-rah”) stands for Individual Coverage Health Reimbursement Arrangement. They allow a business to reimburse their employees for health benefits, including insurance premiums, tax-free.

 

Who Should Get an ICHRA?

ICHRA’s are for nearly any small business with more than one unrelated employee. If a business hasn’t been able to offer small group or level-funded plans because of enrollment requirements, or found a group plan too expensive, ICHRA is a great option.

 

Why Should I Consider One?

First: Savings over a group plan can be substantial. You can now take advantage of individual market rates, which cost less than traditional group plans.

Second: Better cost control and more predictability when it comes to healthcare expenses. 

Third: No more complicated group plan decisions for you. Let employees shop for what works for them! 

What About My Part-Time Staff?

You can cover them, too!

In fact, you can set up your reimbursement amounts differently by type of employee, such as full-time, part-time, or even seasonal. There are other classes you can set up, and offer different reimbursement amounts to each. 

And there is no maximum contribution amount.

 

What Do Employees Get In Return?

More Flexibility!

With ICHRA, the employee shops for health insurance on the state marketplace, and can choose the benefits and plans that make sense for them. They can still add their families, too.

Plans are all ACA-compliant, meaning they are comprehensive and cover important preventive care.

 

Is It Too Late to Sign Up for One?

No! Businesses can offer ICHRA at any time.

Offering an ICHRA opens a 60-day Special Enrollment Period for employees to purchase coverage on the marketplace.

 

Where Can I Get an Estimate?

Get a free, preliminary estimate here!

If you have your census, with a few clicks we can give you a quote you can use to estimate your savings. Just click here to get started. There’s no obligation.

I’m Ready to Explore a Platform

ICHRAs are administered online via a software platform. There are many to choose from.

We strongly recommend you speak with your broker for the best guidance on using one, or have them do the work for you (our Preferred Brokers are trained on them!)

You can check out Peak’s selected ICHRA platforms, the ones we found that have the features that fit most of our employers and brokers best. 

Insuring More Staff for Less

“Last year, through a typical small group insurance plan, we provided 7 people insurance for just over $44,000. This year through ICHRA we will insure 16 people for just under $30,000.”

Team Summit, Breckenridge

Saving $1100 a Month

”It’s well worth it to be able to save on overall premiums costs and give employees the choice to select a plan that best suits their personal needs.”

Breck Heritage Alliance

Better Plans for Employees

”We were able to save almost half off the premiums, which was huge … and our employees are getting better benefits such as a lower deductible.”

Ebert Family Clinic

Next Steps and More Resources