A smarter alternative to traditional group health plans.
An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to reimburse employees tax-free for individual health insurance premiums and qualified medical expenses — instead of sponsoring a traditional group health plan.
ICHRA was introduced in 2020 to give employers more flexibility and cost control when offering health benefits.
Looking for an option for small businesses (less than 50 employees?) Check out
Employer Sets Monthly Allowance
You define how much you want to contribute — by employee class if desired.
Employees Choose Their Own Health Plan
Employees purchase individual health insurance that fits their needs (off-Marketplace, through our platform).
Employer Reimburses Tax-Free
Through Benafica’s BEN360 platform, monthly payments and reimbursements are substantiated and processed.
Yes, ICHRA can satisfy ACA employer mandate requirements for Applicable Large Employers (ALEs).
No, employees offered an affordable ICHRA are not eligible for Marketplace subsidies. If the ICHRA is unaffordable, they may opt out and pursue tax credits instead.
Premiums for individual health insurance are reimbursable. Employers may also choose to reimburse qualified medical expenses under IRS Section 213(d).
Some states are more competitive and individual rates are lower than group rates. It depends on your location and workforce demographics. We are always happy to provide a side-by-side analysis next to your group plan.
Yes. Employers can structure different employee classes, such as full-time vs part-time or by geographic region.
This strategy ensures greater equity across your workforce.
This strategy can be simpler to implement but it can disadvantage older employees and those living in areas where insurance is more expensive.
