Below is a summary of the ICHRA rules. For more information, read our in-depth ICHRA guide or our blog post titled ICHRA 101: Everything you need to know.
- Company size: ICHRA is available to employers of all sizes, including a 5-person startup, a 50-person team, or a 500-person corporation.
- Annual Contribution Allowances: No limit.
- Reimbursement options: Plans can be designed to include premiums only or premiums plus expenses.
- Group plan interaction: An ICHRA can be offered with a traditional group plan as long as both options aren't being offered to the same class of employees. Note: this does not preclude group dental and vision.
- Owner eligibility: Depending on the legal setup of the company, employers may be eligible to participate in ICHRA. For example, C-corp and non-profit owners can participate, while S-corp owners are not eligible (but can deduct expenses directly). It’s recommend that business owners talk to an accountant before setting up an HRA.