ICHRA and QSEHRA: A better health insurance solution for trucking companies

In Part 1 of this series, we examined the pain points that make traditional group health insurance challenging for trucking companies: unpredictable premium increases, one-size-fits-all coverage that doesn't fit diverse workforces, heavy administrative burden, restrictive participation requirements, and limited flexibility in plan design.

The good news? There's a better approach to trucking company health insurance that solves these problems while giving you cost predictability and operational simplicity.

Health Reimbursement Arrangements (HRAs) fundamentally change how transportation companies provide health benefits. Instead of purchasing a group policy with unpredictable renewals and administrative headaches, you set a fixed monthly allowance and employees purchase individual coverage that fits their specific needs. You get budget certainty, they get choice and portability, and everyone benefits from simplified administration.

In this guide, we'll explain how HRAs work for transportation companies, the difference between ICHRA and QSEHRA, and how to determine which option is right for your fleet.

Understanding HRA for transportation: A different approach

Health Reimbursement Arrangements fundamentally restructure the relationship between employers and health insurance. Instead of purchasing a group policy, you provide employees with a monthly allowance to purchase individual health insurance coverage.

There are two primary types of HRAs relevant to trucking companies:

QSEHRA (Qualified Small Employer HRA): Designed for companies with fewer than 50 employees. As of 2026, the maximum reimbursement under a QSEHRA plan is $6,450 for a single employee's coverage and $13,100 for family coverage. All full-time employees must be offered the same benefit amount.

Learn more about QSEHRA limits in 2026 

ICHRA (Individual Coverage HRA): Available to companies of any size with no contribution limits. Allows employers to create different employee classes (such as full-time drivers, part-time warehouse staff, salaried employees, or employees in different geographic regions) and offer different reimbursement amounts to each class.

For both types of HRAs, the mechanics are straightforward: you set a monthly reimbursement amount, employees purchase individual health insurance, and you reimburse them tax-free for their premiums (up to your set amount). Employees maintain their individual coverage even if they change jobs, and you maintain complete cost predictability.

How HRAs address trucking company pain points

HRAs aren't just a different way to provide health insurance—they're specifically designed to solve the problems that make group insurance difficult for businesses like trucking companies.

Fixed, predictable costs

With an HRA, you decide exactly how much to contribute per employee or employee class, and that number doesn't change unless you choose to change it. If you set a $500 monthly allowance for drivers, you'll spend $500 per driver per month, not $500 this year and $625 next year because of claims experience or carrier rate increases.

This transforms health benefits from a variable expense into a fixed cost, similar to wages. You can project your benefits costs for the next three, five, or ten years with confidence. When bidding on contracts or planning expansion, you know precisely what your per-employee health benefit costs will be.

For a trucking company that was paying $750 per employee per month for group insurance and facing a 30% renewal increase, switching to an ICHRA with a $550 monthly allowance provides immediate cost savings of over $200 per employee monthly, or $2,400 per employee annually. For a 50-employee company, that's $120,000 in annual savings…savings that are guaranteed not to evaporate at next year's renewal.

Flexibility for diverse workforces

ICHRA's class-based structure solves the one-size-fits-all problem. You can offer different reimbursement amounts based on:

• Employment status (full-time vs. part-time)

• Geographic location (state or region)

• Job category (drivers vs. warehouse vs. office)

• Salary vs. hourly status

• Seasonal vs. year-round employment

Learn more about ICHRA employee classes

A trucking company with operations in California, Texas, and Ohio might offer $650/month to California employees (where individual insurance is more expensive), $500/month to Texas employees, and $550/month to Ohio employees. This ensures employees in all states can access quality coverage while avoiding overpaying in low-cost markets.

Similarly, you might offer long-haul drivers $600/month while offering part-time dock workers $400/month, reflecting different competitive pressures for these positions.

The result is that each employee class gets an appropriate benefit without forcing everyone into the same mold.

Minimal administrative burden

HRA administration is dramatically simpler than managing group health insurance. Instead of coordinating enrollment windows, managing COBRA, answering detailed coverage questions, and serving as the go-between with insurance carriers, you work with an HRA administrator who handles the operational complexity.

With Take Command as your HRA administrator, we manage the plan document setup, compliance notices, employee education, reimbursement processing, and ongoing support. Your role is limited to the strategic decisions: determining reimbursement amounts for each employee class and funding the HRA through your regular payroll process.

Employees enroll in individual coverage during the annual open enrollment period (November 1 - January 15) or during qualifying life events. Take Command provides personalized guidance to help them navigate the marketplace, compare plans, and enroll in coverage that fits their needs. Once enrolled, employees submit proof of coverage and reimbursements process automatically each month.

For trucking companies, this drastically reduces internal benefits administration time, freeing up HR capacity for recruiting, training, safety programs, and other operational priorities.

No participation requirements

With an HRA, there's no minimum participation threshold. Whether 20% of your employees or 100% choose to enroll in individual coverage and claim reimbursements doesn't affect your ability to offer the benefit.

This is particularly valuable for trucking companies with diverse workforces. Part-time employees who are covered under a spouse's plan can decline individual coverage. Employees who remain on their parents' plans can opt out. Seasonal workers who only need coverage for part of the year can enroll during their employment period.

You still offer a valuable benefit to everyone, but you're not forced to manipulate plan design or contribution levels to hit artificial participation targets.

Employee choice and portability

When employees shop for individual coverage, they choose plans that fit their specific needs. A driver who regularly sees specialists can prioritize a plan with those doctors in-network. An employee with a chronic condition can select coverage that includes their current providers and medications. A family can choose coverage with strong pediatric benefits.

This choice creates higher satisfaction with benefits. Instead of being assigned a plan that may or may not work for their situation, employees actively select coverage they value.

Individual coverage is also portable. When an employee leaves your company, their health insurance doesn't end, they simply continue paying the premiums themselves. This continuity benefits the employee and eliminates COBRA administration for your company.

QSEHRA vs. ICHRA: Choosing the right fit

For trucking companies with fewer than 50 employees, the choice between QSEHRA and ICHRA depends on your specific needs.

Choose QSEHRA if:

• You want the simplest possible implementation

• The contribution limits ($6,450 single / $13,100 family annually) are sufficient for your market

• You're comfortable offering the same benefit to all full-time employees

• You want minimal ongoing administration

Choose ICHRA if:

• You want to offer different amounts to different employee groups

• You want flexibility to adjust contribution amounts as your company grows

• The QSEHRA contribution limits feel restrictive for your competitive needs

• You operate in multiple states and want to adjust for geographic cost differences

Many small trucking companies start with QSEHRA for its simplicity and can transition to ICHRA later if they grow beyond 50 employees or want more flexibility in plan design.

Making the decision

For most trucking companies facing group insurance renewals with double-digit increases, the financial case for HRAs is clear. The combination of immediate cost savings, long-term predictability, and administrative simplification makes HRAs a strategic solution rather than just a benefits decision. Evaluating health insurance for trucking companies means looking beyond just premium costs to consider administrative burden and flexibility. 

Working with an experienced HRA administrator who understands the transportation industry ensures a smooth transition and ongoing compliance. The administrator handles plan documents, employee education, reimbursement processing, and regulatory requirements, allowing you to focus on running your trucking business while offering competitive health benefits that help attract and retain quality drivers.

Traditional trucking company health insurance doesn't have to drain your budget or limit your growth. HRAs provide a solution that gives you predictable costs, administrative simplicity, and the competitive benefits you need to attract and retain employees.

Ready to gain control over your trucking company's health insurance costs? Talk to a Take Command expert to explore how ICHRA or QSEHRA can provide predictable budgets and competitive benefits for your drivers and staff.

Frequently asked questions about HRAs for trucking companies

Can we still offer an HRA if we have drivers in multiple states?

Yes, and this is actually one of the biggest advantages of HRAs for multi-state operations. Each employee purchases individual coverage in their state of residence, so you don't need to find a group plan with adequate networks across all your operating regions. ICHRA even allows you to set different reimbursement amounts by state to account for geographic cost differences.

What happens to our HRA if we grow beyond 50 employees?

If you start with a QSEHRA and grow beyond 50 employees, you can transition to an ICHRA at your next plan year. ICHRA works the same way but removes the contribution caps and allows you to create employee classes with different reimbursement amounts. Your HRA administrator can help you make this transition seamlessly.

Do we have to offer the HRA to all employees, including part-time drivers?

No. You can choose which employee classes are eligible for your HRA. Many trucking companies offer HRAs only to full-time employees, or create separate classes for part-time workers with different (or no) reimbursement amounts. You have flexibility to design the benefit structure that makes sense for your business.

How do reimbursements work for employees who are on the road during open enrollment?

Take Command provides ongoing support throughout the year, not just during open enrollment. Drivers can enroll in coverage from anywhere with internet access, and our team is available by phone or email to guide them through the process. Once enrolled, reimbursements process automatically each month without requiring ongoing action from the employee.

What if an employee can't afford the full premium even with our HRA reimbursement?

Many employees qualify for premium tax credits on the ACA marketplace based on their household income, which can significantly reduce their out-of-pocket costs. Take Command helps employees understand whether they're eligible for these subsidies and how to apply them. In some cases, the combination of your HRA reimbursement and marketplace subsidies means employees pay little to nothing for coverage.