ICHRA, what is it?

The introduction of the Individual Coverage Health Reimbursement Arrangement (ICHRA) provides employers with a new option for offering healthcare benefits to their employees. 

ICHRA stands for Individual Coverage Health Reimbursement Arrangement. An ICHRA is a type of health reimbursement arrangement that allows employers to provide tax-free funds to their employees to purchase individual health insurance plans, Medicare, or qualified medical expenses. The employees are responsible for purchasing and maintaining their own health insurance.  

Unlike traditional group health insurance, ICHRA offers more flexibility and customization options for both employers and employees. ICHRA is often also called the 401(k) for health coverage.