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What is an ICHRA and how does it work?
What is an ICHRA and how does it work?

Understanding the Individual Coverage HRA

Jack Hooper avatar
Written by Jack Hooper
Updated over a week ago

ICHRA stands for “Individual Coverage Health Reimbursement Arrangement” and is the newest standalone HRA that enables employers of all sizes to reimburse their employees tax-free for health insurance premiums and medical expenses beginning Jan 1, 2020.

ICHRA is an employer-funded HRA that reimburses employees for medical premiums and expenses. Employees pay their individual insurance premiums and/or medical expenses (depending on how the employer designs the ICHRA) and then submits receipts for reimbursement from the employer. The employer establishes the reimbursement allowances per employee.

For a more in-depth explanation of the new HRA read our in-depth ICHRA Guide.

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