Individual Coverage Health Reimbursement Arrangements (ICHRAs) were made available as of January 1, 2020. This progressive new coverage allows employers, regardless of size, to provide benefits without offering a group health insurance plan to all eligible employees. This simple reimbursement model is tax-free to employers and employees alike. Download more information HERE.
Plans that are not eligible for reimbursement include short-term medical or limited medical plans. Employers can choose to classify eligible employees in a variety of ways and have different reimbursement rules for each class. The same reimbursement must be offered to all eligible members in each class. Also, employees that are eligible for an employer’s group plan are not eligible for the ICHRA. There is no requirement for an employee to participate in the reimbursement program.
Permissible employee classes are:
Note also that current employees in a classification may be offered a group health plan, while newly hired employees in the same classification are offered in ICHRA.
Employees must annually be given an option to opt-out of the reimbursement; some employees may benefit more by obtaining premium tax credits (PTC) from the Exchanges.
This is another coverage that can allow employers to extend their benefit offerings. EBHRA is available to all eligible employees, including those not enrolled in a company’s health plan. There is an annual limit of $1,800 annually, which has been indexed for inflation after 2020. Unused funds can be rolled over into the next year. Unlike ICHRA, the same option must be offered to all eligible employees regardless of class. Employees can be reimbursed for:
We have the capabilities to handle your implementation of your ICHRA for the entire process. Our benefit advisors will assist with your current group health plan offerings. We can determine if an ICHRA is the right path for your company and your employees. Click HERE to learn more.
Should your company enroll employees in an ICHRA, Oswald has enrollment specialists who can assist your employees with their enrollment in individual health insurance plans or Medicare. In our acquisition of InsureOne Benefits, we have extended our capabilities to now offer family, individual and Medicare coverage. Oswald Companies can be your all in one solution provider for ICHRA and individual health plans. Our goal is to keep the process simple for employers and employees to create a satisfying client experience.