If you're planning on offering an individual coverage HRA to your staff (an excellent decision, if you ask us!), you'll need to give them proper notice. Here's what to know about the 90 day notice for the individual coverage HRA (ICHRA).
The individual coverage HRA is a great option for employers, thanks to its flexibility, efficiency, and affordability. It's great for employees too, since they can choose the plan that works best for them instead of a one-size-fits-all group plan. But for companies transitioning from a group plan to an individual coverage HRA plan, or if they're offering benefits for the first time, there's bound to be a learning curve with this new benefits model. That's why communication is key.
90 day notice and ICHRA
With details set forth by CMS, an employee who is offered an individual coverage HRA will recieve a written notice at least 90 days before the beginning of the ICHRA’s plan year.
Remember that employees who become eligible during the plan year, or later than 90 days before the start of the plan year (such as new hires), will get their notice no later than the date on which their coverage under the ICHRA can begin.
What should be included in an ICHRA employer notice?
We recommend keeping the employer notice short and sweet. An HRA might be new territory for your employees so keep the insurance jargon at a minumum. Just make sure to include the following required information:
- Your ICHRA employer notice should include:
- The dollar amount of the HRA offer
- The date that coverage under the HRA may begin
- Whether the offer extends to dependents (among other things).
- Contact information (including a phone number) for an individual or a group of individuals who participants may contact in order to receive additional information regarding the ICHRA
- A statement of availability of an SEP to enroll in or change individual health insurance coverage, through or outside of an Exchange, for the participant and any dependents who newly gain access to the ICHRA and are not already covered by the ICHRA.
- A statement that the ICHRA is not a QSEHRA.
Want to learn more about the individual coverage HRA?
Our team of small business experts is on hand to chat with you about how to communicate this new benefit to your team. In the meantime, check out our guide on how to set up an ICHRA, ICHRA eligibility requirements, or read about the hallmark feature of this new HRA, the ICHRA classes!