Group benefits · Licensed in 48 states

ICHRA Health Benefits

Fund your team without running a group plan

An Individual Coverage HRA lets you give employees a tax-free monthly allowance to buy their own health insurance, instead of picking one group plan for everyone. You control the budget. They choose the plan. We handle the setup, the notices and the enrollment support.

What to expect

ICHRA: what to expect

ICHRA moves the choice of plan from the employer to the employee, and moves the cost from a renewal you cannot control to a number you set.

You set the budget

You decide the monthly allowance, and can vary it by employee class — full-time, part-time, seasonal, or by location. Your cost is the number you choose rather than whatever the renewal brings.

Employees choose the plan

Each person buys an individual plan that fits their own doctors and family, and is reimbursed tax-free up to your allowance. If they leave, the policy goes with them rather than lapsing.

No minimum group size

There is no participation threshold and no minimum headcount to satisfy, which makes ICHRA workable for employers a traditional group plan would decline or price out.

Modeling for your actual headcount

Send us your census — ages, ZIP codes and who is on the plan today. We model what an ICHRA allowance would cost against your current group renewal, and show where each employee would land.

If the group plan is still the better answer for your workforce, we will say so.

Plan types

ICHRA compared with the alternatives

Three ways to fund employee health coverage. They suit very different employers.

ICHRA

Available to employers of any size, with no cap on how much you contribute. You can set different allowances for different employee classes, and vary them by age and family size within a class. Employees must be enrolled in individual coverage to participate.

QSEHRA

Only for employers with fewer than 50 full-time equivalents who do not offer a group health plan. Annual contribution limits are set by the IRS. Simpler to administer than an ICHRA, but with no employee classes and less flexibility.

Traditional group health

You choose the plan or plans, and everyone picks from that shelf. Participation requirements apply, renewal increases land on you, and employees have no say in carrier or network. Still the right answer for some workforces — particularly where a rich plan is part of how you retain people.

Side by side

Compare ICHRA, QSEHRA and group health

The deciding factors are usually your headcount, how predictable you need costs to be, and how much your team values choosing their own doctors.

Feature	ICHRA	QSEHRA	Traditional group
Employer size	Any size	Under 50 full-time equivalents	Varies by carrier and state
Contribution limit	None — you set it	Capped annually by the IRS	Set by plan cost and your contribution strategy
Who picks the plan	The employee	The employee	The employer
Pros	Predictable, capped cost Different allowances by employee class No participation minimum Coverage is portable for employees	Simple to run No group plan required Tax-free to the employee	Familiar to employees Strong retention tool One plan to administer
Cons	Employees must buy individual coverage Affects premium tax credit eligibility Requires advance notice and substantiation	Cannot also offer a group plan No employee classes Contribution capped	Renewal increases fall on the employer Participation requirements No choice for employees
Best suited to	Employers wanting cost control and a spread-out or varied workforce	Small employers with no group plan wanting something simple	Employers whose benefits are central to retention

Scroll sideways to compare all three →

What to decide before you launch

Six decisions shape an ICHRA. We work through each of them with you before anything goes to your team.

Employee classesWhich groups get which allowance

Allowance amountsWhat you fund per person per month

Effective dateWhen the arrangement starts

Advance noticeEmployees must be told before the plan year

SubstantiationProof of individual coverage each month

Payroll and reportingHow reimbursements flow and get reported

Common questions

Can employees still get a premium tax credit?

Generally not while accepting an ICHRA. If the ICHRA you offer is considered affordable under federal rules, the employee cannot claim a premium tax credit at all. If it is not affordable, they may decline the ICHRA and claim the credit instead. This interaction is the single most important thing to model before launching, and it is worth confirming with a tax adviser.

Is there a minimum I have to contribute?

There is no legal minimum for an ICHRA. In practice the amount matters a great deal, because it determines whether the offer counts as affordable and therefore how it affects your employees. A very small allowance can leave people worse off than no offer at all.

How much notice do employees need?

Employees must be given written notice in advance of the plan year, generally 90 days. Late notice is one of the more common ways an ICHRA launch goes wrong, so we work backward from your target start date.

Can I offer different amounts to different employees?

Yes, by permitted employee class — such as full-time, part-time, seasonal, or by location. Within a class you may also vary the allowance by age and by family size. You cannot vary it arbitrarily between individuals in the same class.

What happens when someone leaves?

The individual policy belongs to the employee, so it goes with them rather than terminating. Your reimbursement obligation ends according to the terms you set. This portability is one of the practical advantages over a group plan.

Is ICHRA right for every business?

No. If your team places a high value on a rich group plan and you can absorb the renewals, group coverage may still serve you better. ICHRA tends to suit employers who want predictable costs, have a geographically spread workforce, or cannot meet group participation requirements. We will tell you which case you are in.

ICHRA modeling for your business

Tell us your headcount, where your people are based and what you spend on health benefits today. A licensed agent will model an ICHRA against your current arrangement and show you both numbers.

All Solution Plus is a licensed insurance agency. We do not provide tax, legal or accounting advice, and nothing on this page should be relied upon as such — please consult your own advisers before establishing an ICHRA. Individual Coverage HRAs are governed by federal regulations, and rules regarding employee classes, notice requirements, substantiation, affordability and premium tax credit eligibility are subject to change. Contribution limits for QSEHRA are set annually by the IRS. Plan availability, premiums and provider networks vary by state, county and carrier. Any information we provide is limited to the plans we offer.