What's an ICHRA? How does it work?

An Individual Coverage Health Reimbursement Arrangement — or ICHRA — is a modern way for employers to offer health benefits. Instead of picking a single group plan for everyone, employers give employees a set amount of tax-free dollars to use toward their own health insurance. It puts choice in employees’ hands and keeps things simple for employers.

Despite the long name, the idea is straightforward: employees choose, employers contribute. (Don't forget, the benefit contribution is all tax-free!)

How does Gallagher ICHRA work?

Here’s the process in a nutshell and what happens all in the ICHRA portal!

1. The employer sets the budget. The business decides how much tax-free money to offer employees each month.
2. Employees pick their own plan. Employees shop for a health insurance plan that fits their needs on the individual marketplace. (We help connect them with licensed brokers, too!)
3. The benefit helps cover the cost. Employees use the employer’s contribution to help pay for their premiums.
4. Funds are reimbursed compliantly. The employer reimburses employees for their health insurance premiums, and the funds are delivered  in a secure, compliant way via ACH transfer.

Have any questions? Try us on live chat or email Gallagher@StretchDollar.com.