An ICHRA is the next generation of employer-sponsored health care coverage. For the first time, employers of any size can make contributions to employees for major medical and Medicare premiums on a tax-advantaged basis with no caps on the reimbursement amount.
If your organization is looking to eliminate the erratic renewal cost increases associated with group health insurance, an ICHRA can help more accurately predict and define the expense of employee health care.
How It Works
Phase 1: Plan Design Phase
Your organization defines contribution limits and employee eligibility requirements aligned with their culture and budget.
Phase 2: Education & Enrollment Phase
Employees select a qualified individual health insurance or Medicare insurance policy specific to their personal needs.
Phase 3: Administration Phase
Employees are reimbursed for their premium expenses in the amount determined by your plan design.
Simple & Hassle-Free Payments
- Employer establishes a fund tied to their ICHRA plan
- Employee selects a qualified individual health insurance policy
- PPM Platform compiles detailed reporting on employee premiums and carrier information for employers — which they can upload into their payroll system
- PPM begins making recurring monthly premium payments for each employee policy from fund
- Employer receives employee portion of the premium cost through payroll withholding
Ready to join the 800,000 employers that will offer an ICHRA by the end of 2025? Download our ERC | ICHRA brochure to learn more.
Source: Departments of Treasury, Labor & Health and Human Services