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Is ICHRA subject to COBRA and ERISA?
Is ICHRA subject to COBRA and ERISA?

How to know when your company will be required to follow ERISA and COBRA requirements

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

Yes, since ICHRA is considered a group health plan it is subject to both COBRA and ERISA unless an exception applies (certain small employers, churches or governments not subject to Code Section 4980B).

COBRA requires an employer with 20 or more employees to offer continuation coverage to employees and their dependents where they lose coverage as a result of a qualifying event, such as an employee’s death, divorce, or job loss.

ERISA provides minimum standards for employee benefit plans including protecting plan interests and establishing fiduciary relationships between the plan and participants. ERISA applies to all employers establishing ICHRA and relates to the type of plan documents they must deliver.

For more information, read our blog post, The COBRA requirements you need to know for ICHRA.

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