ICHRA - Individual Coverage HRA

As the name implies, ICHRA is based on reimbursing employees for insurance rather than buying it for them. At a high level, the way ICHRA works is very simple:

  1. Employers design their plan, including defining which employees are eligible and establishing reimbursement limits

  2. Employees purchase the individual plans they want

  3. Employees submit claims for reimbursement

  4. Employers reimburse employees for valid claims