ICHRA Health Insurance
ICHRA Health Insurance Solutions for Employers
An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employers to reimburse employees tax-free for individual health insurance premiums and qualified medical expenses, rather than offering a traditional group plan. Many small to medium-size businesses use ICHRA to provide robust employee benefits while managing costs effectively, giving employees the flexibility to choose coverage that best meets their needs.
At Gilbert’s Risk Solutions, we provide a range of benefits through leading insurance partners. ICHRA plans offer an effective way for employers to reduce the burden of traditional group insurance.
How an ICHRA Works
Gilbert’s makes it easy to utilize your ICHRA, allowing you to receive reimbursements for insurance premiums and other medical expenses.
1. Accept Your Benefit
You’ll receive an email with an invitation from our partner to set up your account. Once logged into your account, you will accept or waive your HRA benefits.
2. Enroll in Health Insurance
To participate in the ICHRA, you must have individual health insurance. If your employees need assistance, one-to-one enrollment assistance is available.
3. Submit Your Claims
Once claims are made you will need to submit them for reimbursement. Proof of payment is required for each claim. Once received, you will receive your funds in 3-5 business days.
Benefits of an ICHRA for Employers
- Fixed, predictable employer costs
- No minimum participation requirements
- Employees choose their own plans
- Works for any size employer
- Tax benefits: contributions are tax-free for employees
Benefits of an ICHRA for Employees
- Choice and flexibility to shop for individual market plans that fit their own needs and preferred doctors
- Reimbursement for out-of-pocket expenses
- Access to potentially wider provider networks depending on the plan chosen
While we’re proud to call Pennsylvania our home, we’ve helped businesses all across the country manage their risk and we look forward to helping you, too – no matter where it is that you call home.
ICHRA vs. Traditional Group Health Insurance
| ICHRA | Traditional Group Plan | |
|---|---|---|
| Cost Predictability | Fixed employer contribution | Premiums can fluctuate at renewal |
| Plan Flexibility | Employees choose their own individual plan | Employer selects one plan for all employees |
| Admin Burden | Lower — no plan management required | Higher — employer manages plan design and renewals |
| Employee Choice | High — employees shop the individual market | Limited to employer-selected options |
Our Benefits Management Services Approach
We offer a full complement of benefits from the nation’s premier insurance partners, and our experienced consultants can help you develop a package that’s right for you and your budget. Our approach is consultative and solutions-based.
Your Outsourced Partner
Setting up an ICHRA involves eligibility classes, contribution strategy, and compliance requirements — we guide you through each step so your program works for both your budget and your team.
360 Degree Approach
We take a 360-degree view of your business to ensure all aspects are secure. Our team of experts in Loss Control, Employee Benefits, HR, and training are all available to our commercial clients, ensuring multi-pronged risk mitigation.
Value Added + Tailored Solutions
In addition to access to our highly experienced benefits and HR consultants, we think you need another layer of protection. A 2015 study found U.S. employers face about a 12% chance of an employee claim that could result in a lawsuit — compliance, documentation, and HR best practices are your main defense. Many employers don't recognize the potential risks they carry, lacking adequate policies or procedures to mitigate them. We're dedicated to offering tailored solutions to each scenario, helping you implement ICHRA as a risk management measure and select the optimal coverage to protect your business and employees.
ICHRA Health Insurance FAQs
An ICHRA lets employers reimburse employees tax-free for individual health insurance premiums and qualified medical expenses, instead of offering a traditional group plan.
ICHRA works for businesses of any size, but it's especially attractive for small businesses that want to offer competitive benefits without the administrative burden of managing a traditional group plan.
Employers should maintain records of reimbursement amounts, employee eligibility classes, and proof that employees maintained qualifying individual coverage, to stay compliant with ICHRA regulations.
Employees generally must use ICHRA funds toward individual market plans that meet minimum essential coverage requirements — it doesn't typically cover any health expense without qualifying coverage in place.
Offering an ICHRA that meets affordability requirements can satisfy the ACA's employer mandate for applicable large employers, similar to offering a traditional group plan.
