What is ICHRA?

What is ICHRA? What is it used for and how does it work?

ICHRA or Individual Coverage Health Reimbursement Arrangement is a new and improved way for employers to offer health insurance to their employees. With ICHRA an employer can provide a defined non-taxed contributions to their employees, who can then use those funds towards purchasing an insurance plan that works for them. It is a much more attractive alternative to a tradition employer sponsored group health plan because it offers savings to employers and employees and allows the employee to choose a plan that works for them. 

Another perk for the employer is ICHRA's defined contribution, which removes the concern for high rate renewals because the contribution is set by you, the employer. Gone are the days where businesses need to consider their health expenses as unpredictable. Also, the administrative burden of managing a health plan is highly diminished when using an ICHRA administration platform.

Its a win, win win. No more crazy high renewals, no more tying up your resources in health insurance administration and your employees are more satisfied that they can now elect a plan that works for them. 

At The Big Plan we help the employer administer and manage their ICHRA and we help the employees elect, enroll and manage their plans. Curious what your contributions can look like? Try our ICHRA estimator here.