Instead of offering a traditional group health plan, an ICHRA lets employers reimburse employees tax-free for individual health insurance premiums and medical expenses. For the right organization, this can mean more predictable costs and more choice for employees.
How it works
Rather than selecting and managing a group plan, the employer sets a defined reimbursement allowance. Employees use that allowance to shop for their own individual health insurance policy on the marketplace or elsewhere, then get reimbursed tax-free up to the allowance amount.
Why consider it
An ICHRA shifts cost predictability in the employer's favor — the reimbursement amount is fixed and controlled by the employer, rather than fluctuating with a group plan's annual renewal. It can also expand employee choice, since individual marketplace plans vary more than a typical group plan menu.
What determines fit
ICHRA isn't the right fit for every employer or workforce. Group size, demographics, geographic spread, and current plan structure all factor into whether it's worth exploring further. Employers with a younger or more geographically dispersed workforce sometimes see the clearest benefit.
Is it right for your organization?
The best way to know is to have your specific numbers evaluated against ICHRA eligibility and cost considerations — exactly what a benefits analysis is designed to do.
Don't overlook employee education
An ICHRA shifts employees into the individual marketplace to select their own coverage — making education even more critical than under a traditional group plan. Every UBA Health ICHRA rollout includes custom, company-branded materials, text message campaigns, short explainer videos, and a certified benefits counselor available to help each employee choose the right plan.