Health Reimbursement Arrangement
What does ICHRA stand for?
ICHRA stands for Individual Coverage Health Reimbursement Arrangement. It's also commonly referred to as an ICHRA plan.
How does an ICHRA work?
The way ICHRA works is super simple. An employer establishes a budget for benefits, employees choose a health plan, and the employer reimburses them on their paycheck. If medical expenses are incurred, they can simply upload a receipt and get reimbursed.
ICHRA Plan Overview
An Individual Coverage Health Reimbursement Arrangement, or ICHRA, is a new type of HRA in which employers of all sizes can reimburse their employees for a designated amount of health insurance premiums. ICHRA's simple and modern health insurance reimbursement model has been a game-changer for employers looking to provide health benefits to their staff.
Evolving from another type of HRA, the QSEHRA, ICHRA appeals to more employers by offering greater design flexibility and higher tax-free employee reimbursement limits.