ICHRA

An individual coverage HRABenefitsIndividual coverage HRAAn HRA, open to employers of any size, that reimburses individual health insurance premiums and costs with no federal dollar cap, offered on the same terms within each class of employees — and never to a class that is offered the group plan reimburses premiums and medical costs for employees who buy individual health insurance. Employers of all sizes may offer one, and contribute as little or as much as they want — but on the same terms to everyone in a class of employees, with amounts allowed to rise with age and family size.

Classes are the design tool: full-time and part-time, salaried and hourly, employees in the same rating area or state, seasonal and temporary staff, and others the rule lists. Where the group plan and the ICHRA are split by some of those classes, a minimum class size applies. An employer can offer an ICHRA to one class and the group plan to another, but never both to the same class. Employees must generally have notice 90 days before the plan year.