Individual Coverage Health Reimbursement Arrangements (ICHRAs) allow employers to reimburse employees for their health insurance premiums while giving them the freedom to choose their own plans. Introduced in 2020, these plans remain relatively unknown but offer flexibility for both employers and employees, especially those hiring remote workers. While ICHRAs offer benefits, such as customization and cost savings, there are also challenges, including plan selection complexity and potential impact on preexisting subsidies for employees. Click here for article.
ICHRAs enable employees to select health plans while employers reimburse premiums and other costs.
They provide employers flexibility, particularly useful when offering benefits to remote workers across states.
Drawbacks include potential complexity for employees and challenges with preexisting conditions or limited network plans.
ICHRAs may affect eligibility for marketplace subsidies, making them less favorable for some employees.
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