ICHRA stands for Individual Coverage Health Reimbursement Arrangement. It’s a type of employer-sponsored benefit that allows you to get reimbursed for health insurance premiums and other eligible medical expenses. It’s an alternative way for you to get full health insurance coverage instead of your employer providing a group plan.
Here’s how it works:
-
Your employer sets a monthly allowance — this is the amount they’ll reimburse you for qualified health coverage.
-
You choose and purchase your own health insurance plan, typically through BEN360, the ACA Marketplace or directly from an insurance carrier.
-
You submit proof of your coverage and expenses, and your employer reimburses you up to the amount of your monthly allowance.
ICHRA gives you more flexibility because you can choose a plan that best fits your personal or family healthcare needs.