In addition to enabling employers to help employees pay for their individual heath insurance premiums tax-free, ICHRA also allows reimbursement for medical expenses such as copays, contacts and glasses, orthodontics, RX, etc. The list of qualified medical expenses is originally found in the IRS’s Publication 502 (starting on page 5). Keep in mind employers can choose from this list so everything will not necessarily be included. Here is the list of medical expenses that are reimbursable through ICHRA.
Before an employee can receive reimbursements, they must show proof of qualified health insurance.