ICHRA Employee Classes

The Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to categorize employees into distinct classes for benefit allocation. There are 11 different employee classes. 

• Full-Time Employees (FTEs): These are employees working a standard full-time schedule, typically defined by your organization. A business can define whether this means 30 hours or 40 hours a week, but to satisfy the employer mandate, it will need to be at least 30 hours a week.   
• Part-Time Employees (PTEs): Employees working fewer hours than full-time fall into this category. ICHRA allows the same benefits for both full- and part-time employees if chosen. 
• Seasonal Employees: Those employed during specific seasons belong to this class.  
• Temporary Employees: Employees hired for a limited period fall into this class.
• Union Employees: Workers represented by a union have distinct benefit requirements. ICHRA accommodates these specific needs.  
• Eligible Employees in a Waiting Period: New hires must satisfy a waiting period to enroll.
• Salaried Employees: Salaried staff members receive a consistent salary regardless of hours worked. This class streamlines allocation based on salary levels. 
• Hourly Employees: Hourly workers have varying hours, making it necessary to adapt benefits to their dynamic schedules. 
• Employees in Different Locations: Geographical differences impact healthcare costs. This class allows adjustments based on the location of employment. 
• Employees with Different Employment Dates: New hires or employees with varying employment dates can receive benefits aligned with their tenure. 
• A combination of two or more of the above: Employers can combine two or more of the above classes to create a new class based on their needs. 

In addition to multiple classes, employers can also offer an ICHRA to new employees while keeping current employees on a group plan. Minimum class size requirements may then apply for certain classes. Minimum class sizes only apply when at least one employee class is being offered a traditional group plan.

Contact our ICHRA Support Team with any questions at 781-228-2222, option 4 or email us at ichra@hsainsurance.com.