Signed into law in 2019, the Federal Government made it possible for employers to reimburse employees with tax-free dollars to purchase health insurance in the individual market.
Flexibility & Choice
Employer-sponsored health insurance
ICHRAs represent a new way of looking at employer-sponsored health insurance. Instead of purchasing a one-size-fits-all group insurance plan for your employees, ICHRAs allow for your employees to choose a carrier and plan that works best for them and their families. It also allows that employee to keep that plan regardless of who their employer is.
“Defined contribution” model
Through its “defined contribution” model, ICHRAs allow for employers to better control their costs and avoid premium increases year after year. Some employers have seen savings in upward of 50% in health insurance premium.
While ICHRAs are not for every employer, for those looking to get out of having to manage a health plan each year, an ICHRA may be the solution you have been looking for. CGI can provide an in-depth analysis to see if an ICHRA makes sense for your organization and will review the pros & cons in detail.