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A Different Way to Offer Health Benefits
An Individual Coverage Health Reimbursement Arrangement, or ICHRA, allows employers to provide a set reimbursement amount that employees may use toward individual health coverage and eligible medical expenses. Benefits Connection can help employers review whether this strategy may fit their business.
What is an ICHRA?
An ICHRA is an employer-funded health reimbursement arrangement. Instead of offering one traditional group health plan, the employer sets a reimbursement amount. Employees can use the arrangement toward individual health insurance coverage and eligible medical expenses, based on plan rules.
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Why Employers Consider ICHRAs
A different approach to funding health benefits for your team.
More Flexibility Than Some Traditional Group Plans
Design a benefit that fits your budget rather than accepting a one-size-fits-all premium.
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Defined Employer Contribution
Set a fixed monthly allowance to control costs with precision.
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Employee Plan Choice
Employees select the individual plan that fits their own needs.
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Potential Option for Small or Growing Businesses
Offer a formal benefit without the complexity of a traditional group plan.
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Alternative Strategy During High Renewals
A viable path when a group renewal comes in too high.
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How Vitable can fit
Vitable-powered ICHRA options may help employers pair an ICHRA strategy with primary care access and employee support. Vitable may help with primary care, care navigation, employee experience, and benefits administration support where available.
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Is an ICHRA right for every business?
Not every employer is the right fit.
FAQs
Straight answers to the questions we hear most often about ICHRAs.
Individual Coverage Health Reimbursement Arrangement. It is an employer-funded arrangement that allows employees to seek reimbursement for individual health insurance premiums and eligible medical expenses.
No. A traditional group plan is a single policy covering a group. An ICHRA allows the employer to set a fixed contribution that employees use toward their own individual market plans.
Yes. Employees may select an individual health plan that fits their needs, provided it meets the requirements set by the ICHRA plan rules.
Vitable-powered ICHRA options may be available to pair primary care and care navigation with the reimbursement arrangement. We can review this during a consultation.
Not necessarily. Eligibility depends on plan design, employee classes, affordability rules, and state market availability. A careful review is needed.
Still have questions?
We can walk you through the details in plain language.
Curious about ICHRAs?
Benefits Connection can help you review ICHRA options, Vitable-powered solutions, and other benefits strategies to see what may fit.