The ICHRA Shop Insurance Agency

Step 2 | ICHRA Contributions

Who can be offered an ICHRA?

With certain exceptions (including the employee's age and family size), an employer must offer the ICHRA on the same terms to all individuals within a class of employees. There are 11 exclusive employee class descriptions:

• Full-time

• Part-time

• Salaried

• Non-salaried (hourly)

• Seasonal

• Employees covered by a particular collective bargaining arrangement.

• Non-resident aliens with no U.S.-based income.

• Employees who have not satisfied their waiting period.

• Temporary employees of staffing firms.

• Employees working in the same insurance rating area (same geographic location, such as state or multi-state region)

• Any combination of two or more of the classes previously mentioned

Defining the Contribution Amount

The employer defines the contribution amount it will contribute, tax-free to the ICHRA. The amount can be as little or as much as the employer wants (no minimum or maximum contribution amounts are required). The contribution amount must be a fixed dollar amount.

Sample Contribution Strategies

Option 1: Defined Contribution by Tier

Contribution by tier is used when an employer wants to contribute to the total premium, including dependent premium cost. The employer determines their health benefit budget and sets a fixed contribution amount, giving equal amounts to all employees regardless of age.

Option 2: Defined Contribution by Relationship

Contribution by relationship is used when an employer wants to contribute based on the people. An employer may specify fixed contribution amounts for the employee, the employee’s spouse, or the employee’s child(ren).

Option 3: Percentage of Benchmark Plan by Relationship (age bands apply)

Benchmarking may be used to determine the fixed contribution amount. By using a percentage of a benchmark plan, an employer can “back into” a fixed dollar amount. However, the employer contribution must be a fixed dollar amount.

Step 3 | Choosing your Vendor Partner

Janet from The ICHRA Shop helps you learn about ICHRA's.

Shopping Experience Vendors

Do your employees want a personalized health insurance shopping experience?
Do you want an open enrollment Dashboard to track employee progress?

Administration Vendors

Need ACA reporting assistance?
Do you want a vendor that integrates with Payroll for Employee additions and terminations?

Premium Payment Vendors

A major advantage of ICHRA is that you can help employees pay part of their premiums PLUS play for out-of-pocket medical expenses like copayments, Rx and deductible expenses.

Reimbursement Only Vendors

Employees purchase their own Individual and Family Health insurance and get reimbursed from the company.

ICHRA Agency Support | ICHRA Consulting Packages | VIP Enrollment

Protecting Your Future with The ICHRA Shop Insurance Agency

Fast, Easy & ACA Compliant

Step 1 | Introduction

Step 2 | ICHRA Contributions

Step 3 | Choosing your Vendor Partner

Shopping Experience Vendors

Administration Vendors

Premium Payment Vendors

Reimbursement Only Vendors

We enroll the employees!

Step 4 | Enrollment

ICHRA Agency Support | ICHRA Consulting Packages | VIP Enrollment

Protecting Your Future with The ICHRA Shop Insurance Agency

Fast, Easy & ACA Compliant

Step 1 | Introduction

Step 2 | ICHRA Contributions

Step 3 | Choosing your Vendor Partner

Shopping Experience Vendors

Administration Vendors

Premium Payment Vendors

Reimbursement Only Vendors

We enroll the employees!

Step 4 | Enrollment

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