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ICHRA

Simplified Individual Coverage HRAs

Streamlined employee health benefit options for companies of any size

ICHRA OVERVIEW

Tailored Health Benefits for Every Business

ICHRA stands for Individual Coverage Health Reimbursement Arrangement. It is an alternative to traditional group health benefits that allows employers of any size to provide more flexible and cost-effective health benefits to their employees. With ICHRA, employees choose their own health insurance plans and get reimbursed for expenses.

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ICHRA FAQ

AVAILABLE IN ALL 50 STATES

Who can offer an ICHRA?

Employers of any size can offer an ICHRA. You must have at least one W-2 employee.

How does ICHRA work for my employees?

Employees receive a set monthly allowance that they can use to get reimbursed for qualified health insurance premiums and other eligible medical expenses. They select and enroll in individual health plans that fit their unique needs, rather than relying on a one-size-fits-all group plan.

Do I have to wait for open enrollment to switch to ICHRA?

No, you don’t have to wait! Employers switching to ICHRA qualify for a Special Enrollment Period (SEP). Be sure to check the terms of your group plan if you’re switching.

How can I make a smooth transition to ICHRA?

To ensure a smooth transition to ICHRA, it’s essential to partner with a knowledgeable implementation provider like Benafica. We offer transparent, hands-on support to assist employers and employees with plan setup, communication, compliance, enrollment, and address any questions throughout the year. Our comprehensive approach ensures that all aspects of the ICHRA are managed effectively, providing a seamless experience for your organization.

Pricing

Instead of Picking a Plan, Set a Budget

Option 1

Age-based

This strategy ensures greater equity across your workforce.

Set a target coverage-level for your workforce (e.g. 75% of a Gold Plan)
Each employee will have the same purchasing power.
Contribution amounts will differ depending on employees age and work location. Why? Insurance costs vary based on age and location.
Priority claims processing
Additional employee benefits
Premium customer support

Option 2

Flat-dollar

This strategy can be simpler to understand but it can disadvantage older employees and those living in areas where insurance is more expensive.

Set a flat dollar amount for all employees (e.g. $500)
Each employee will receive the same dollar amount to buy health insurance.
Priority claims processing
Additional employee benefits
Premium customer support

Latest ICHRA Articles

December 16, 2025

A Deeper Dive into ICHRA Contribution Strategies

Designing your ICHRA starts with defining how much to contribute and whether to include out-of-pocket healthcare expenses. This guide breaks down your options and how Benafica helps you model a contribution strategy that fits your business and budget.

November 13, 2025

How ICHRA Fares Heading into 2026

As ACA subsidies face uncertainty and group plan renewals keep rising, employers are rethinking their health benefits strategy for 2026. Explore how ICHRA remains a flexible, cost-stable option amid market volatility — and why getting an ICHRA quote now can help you plan ahead.

September 19, 2025

Meet BEN360: Benafica Revamps Its ICHRA Platform, Taking ICHRA Administration to the Next Level

Meet BEN360: Benafica's upgraded evolution of its legacy ICHRA platform, designed to supercharge ICHRA Administration for employers and HR. Launching in the Fall 2025 open enrollment season to keep your benefits running smoothly in 2026 and beyond.

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Call us at 651-287-3253 or fill out the form.