Flexible Designs
No more one-size fits all plans! ICHRA plans can be customized and designed to achieve you or your clients’ goals.
Reimburse your employees tax-free with an individual coverage health reimbursement arrangement from the industry’s only individual coverage health reimbursement arrangement (ICHRA) platform with hands-on enrollment support.
Take Command makes ICHRA administration simple and easy.
Flexible Designs
No more one-size fits all plans! ICHRA plans can be customized and designed to achieve you or your clients’ goals.
Simple Administration
Take Command will automatically generate the documents your employees need and can help them search for and enroll in a plan online.
No Contribution Limits
There are no annual contribution caps. This allows employers to define unrestricted benefit budgets.
Want to dive into the details of the individual coverage HRA?
Our ICHRA Guide will walk you through how ICHRAs work, ICHRA benefits, and ICHRA setup.
Join the 5,000+ businesses saving on health benefits with Take Command
Union Orthotics and Prosthetics
"Facing a 40% renewal, our broker introduced us to the idea. Take Command provides the tools there for everybody to enroll in very easy formats on the platform."
Taro Health
"To attract and maintain talent, we needed benefits. Managing our ICHRA has been simple and hands-off. I spend two hours a month managing and administering it."
StreamCare
"Take Command has made it simple to set up and administer the small business HRA for StreamCare and we highly recommend it to other small businesses."
An Individual Coverage Health Reimbursement Arrangements (ICHRA) is a type of Health Reimbursement Arrangement (HRA) that allows employers to reimburse employees for their individual health insurance premiums and qualified medical expenses. Here’s your in-depth guide to ICHRAs, including rules, benefits, and how they compare to other health coverage options.
Before we dive into ICHRAs, let's take a step back and define what an HRA is. An HRA is an employer-funded, tax-advantaged health benefit plan that reimburses employees for certain medical expenses. The employer sets aside a specified amount of money for each employee, and the employee can use that money to pay for eligible medical expenses. HRAs are typically used with a high-deductible health plan (HDHP).
While both are tax-advantaged accounts that can be used to pay for qualified medical expenses, there are some key differences. An HSA can only be used with an HDHP, and the funds in the account roll over from year to year. Additionally, the employee owns the funds in an HSA and can take them with them if they leave their job. On the other hand, the employer owns the funds in an HRA, and any unused funds at the end of the year typically revert back to the employer. Check out this blog for more information.
Unlike an HRA or HSA, a PPO is a type of health insurance plan that typically requires members to pay a copay or coinsurance for medical services. PPOs also often have a network of preferred providers that members can choose from, and seeing out-of-network providers can result in higher out-of-pocket costs.
Any unused HRA funds at the end of the plan year typically revert back to the employer. However, some employers may choose to roll over unused funds to the next plan year or offer a grace period for employees to use up their remaining funds. Get more information here.
Now that we have covered the basics of HRAs, let's dive into ICHRAs specifically. An ICHRA is a type of HRA that allows employers to reimburse employees for their health insurance premiums and qualified medical expenses. With an ICHRA, the employer sets a monthly allowance for each employee, which the employee can use to purchase individual health insurance coverage or pay for eligible medical expenses. ICHRA for dummies 101.
An ICHRA administrator is a person or entity responsible for administering and managing the plan on behalf of an employer. Their role is to ensure compliance with all applicable laws and regulations, manage employee enrollment and eligibility, process claims and reimbursements, and provide support to both the employer and employees with any questions or concerns they may have.
The cost of ICHRA administration can vary depending on the administrator and the size of the company. However, the cost is typically less than the cost of a traditional group health insurance plan. Since the employer is only paying for the allowance and not the entire premium, the overall cost of an ICHRA can be much more manageable for small businesses.
To establish an ICHRA, a written plan document must be created that outlines the terms and conditions of the plan. The plan document must include information such as the eligibility requirements for employees, the monthly allowance amount, the types of expenses that are eligible for reimbursement, and any other plan rules or restrictions.
Will ICHRA help you save on benefits?
In about half the country, individual insurance rates are cheaper than their group plan equivalents, meaning health benefits dollars will stretch further with ICHRA. Use our heat map to see if your location is prime for saving.
ICHRA plans come with their own set of pros and cons that businesses should consider before implementation:
Pros:
Cons:
Check out this blog for more information.
An ICHRA provider, like Take Command, is a company that helps other businesses manage healthcare benefits for their employees through something called an ICHRA plan. The employer gives their workers a certain amount of tax-free money each month to buy their own health insurance on the open market. When a business teams up with Take Command, they make setting up this ICHRA thing a piece of cake, taking care of all the legal stuff and making sure employees have an easy time picking and managing their policies. This way, the company can keep their healthcare expenses in check and employees can choose the plan that works best for them. All about ICHRA providers.
One of the main differences between an ICHRA and a traditional group health insurance plan is that with an ICHRA, employees can choose their health insurance plan. This can be an advantage for employees who prefer more flexibility and control over their healthcare.
However, it can also mean that employees may have fewer options for healthcare providers and services than they would with a traditional group plan. Check out this blog for more information.
ICHRA and QSEHRA are two distinct healthcare reimbursement arrangements that offer unique features and benefits to employers and employees, each catering to different business needs and structures. Check out this blog for more information.
Here's a comparison chart to help illustrate the key differences between ICHRA and QSEHRA:
Feature |
ICHRA |
QSEHRA |
Eligible Employers |
All employers, regardless of size |
Small employers with 50 or fewer employees |
Employer Requirement |
Cannot offer a group health plan to ICHRA-eligible employees |
Cannot offer any group health plan to employees |
Allowance Variation |
Can vary based on job classification, family size, and geographic location |
Can only vary based on family size |
Employee Coverage |
Must purchase individual health insurance |
Can cover individual, group, or Medicare policies |
Maximum Annual Allowance |
No limit set by the government |
Limits set by the government each year |
Minimum Essential Coverage |
Must meet minimum essential coverage requirements |
No specific minimum essential coverage requirement |
Employee Tax Credits |
Employees may lose premium tax credits |
Employees can still access premium tax credits |
Reporting and Compliance |
More complex reporting and compliance requirements |
Simpler reporting and compliance requirements |
In addition to the specific rules governing ICHRAs, general rules apply to all HRAs. Some of the key rules include:
It's important to note that the IRS has specific rules governing employer reimbursement for health insurance premiums. Before the creation of ICHRAs, employers were prohibited from reimbursing employees for their health insurance premiums. However, the creation of ICHRAs allows employers to provide this type of reimbursement in a tax-advantaged way.
It's also important to note that any reimbursements made through an HRA, including ICHRAs, are tax-free for employees. However, any unused funds in an HRA at the end of the plan year typically revert back to the employer and are considered taxable income.
Eligible expenses for an HRA, including an ICHRA, include a wide range of medical expenses that are not covered by insurance. These expenses may include:
Eligible expenses for an HRA are subject to change each year. As of 2021, the eligible expenses for QSEHRAs and ICHRAs are the same. However, the eligible expenses may change in the future.
HRA eligible expenses over the counter
It's important to note that as of January 1, 2020, HRAs can be used to reimburse the cost of over-the-counter (OTC) medications without a prescription. This change was made as part of the CARES Act.
Ready to Get Started?
Begin designing your ICHRA plan today and be set up in minutes. You could start reimbursing your employees tax-free sooner than you think.
Ready to get started?
Begin designing your ICHRA plan today and be set up in minutes. You could start reimbursing your employees tax-free sooner than you think.
One of the best things about ICHRA is that employers can customize the plan to fit their workforce's specific needs. Unlike traditional group health plans, ICHRA lets employers set their own contribution amounts and eligibility criteria. This means that employers can offer health benefits to their employees while saving money on administration costs.
So, what kinds of health care expenses can be reimbursed through ICHRA? Well, any expenses that are approved by the IRS can be reimbursed, including premiums for individual health insurance, deductibles, copayments, and prescription drugs. Employers can even choose to set limits on the amount they will reimburse for each expense category, or offer a flat dollar amount that employees can use for any eligible expense.
To set up an ICHRA plan, employers need to create a plan document that outlines the rules and regulations of the plan. The plan document should include information about eligibility criteria, reimbursement rates, and other important details. Once the plan document is created, employers can begin offering the plan to their employees.
When it comes to choosing between ICHRA and other health benefit plans, employers may want to consider the pros and cons of each. One of the pros of ICHRA is that it's flexible and cost-effective, while some employees may prefer the stability of a group plan. Employers may also want to consider the differences between ICHRA and QSEHRA.
HRAs are a popular way for employers to provide health benefits to their employees. These plans allow employers to reimburse employees for their health care expenses, including premiums for individual health insurance coverage. However, there are specific rules that employers need to follow in order to stay in compliance with the IRS.
One of the most important rules is that employers can only reimburse employees for health insurance premiums if they offer the plan on a pre-tax basis. This means that the employer must have a Section 125 cafeteria plan in place. Additionally, the employer must offer the same terms to all employees who are eligible for the plan.
Another important HRA rule for employers is that they must ensure that their plan complies with the IRS guidelines. The IRS has specific guidelines for HRAs that include rules regarding eligibility criteria, maximum annual reimbursement amounts, and other important details. Employers must make sure that their plan complies with these guidelines in order to avoid penalties.
Employers should also keep in mind that they are responsible for administering their HRA plan in compliance with the rules. This means that they must keep accurate records of employee reimbursements, and they must make sure that the plan is being administered fairly and consistently for all eligible employees.
Take our HRA quiz to see which HRA is right for you!
Eligible expenses for an HRA are those expenses that are considered "qualified medical expenses" under the IRS guidelines. These expenses include deductibles, copayments, coinsurance, and other out-of-pocket costs that employees incur when receiving medical care. They also include expenses for prescription drugs, medical equipment, and other health care-related expenses.
In 2023, there will be some changes to the list of eligible expenses for HRAs. For example, certain over-the-counter (OTC) items that were previously not eligible for reimbursement will now be eligible, including items such as pain relievers, allergy medication, and cold and flu remedies.
It's important for employees to understand what expenses are eligible for reimbursement under their HRA plan. By understanding these eligible expenses, employees can make the most of their HRA benefit and ensure that they are getting the most value from their employer's health care plan.
We understand that choosing the right healthcare benefits for your employees is a critical decision. ICHRAs offer a unique solution with both advantages and challenges. We're here to help you navigate this process and make it as smooth as possible.
With our ICHRA plans, you can better control costs, offer employees greater flexibility, and simplify administration. Plus, our solutions cater to businesses of all sizes, providing valuable tax benefits for you and your employees. However, we're aware that implementing ICHRA plans comes with potential downsides, such as employees missing out on group plans or opting for inadequate coverage.
Our team is committed to guiding your business through complex regulations, ensuring compliance and minimizing confusion for your employees. While the cost of individual plans may fluctuate, we work diligently to help your employees make informed choices about their health insurance policies.
At Take Command, we strive to balance the professional and conversational approach to offer you the best ICHRA experience. We're dedicated to helping you and your employees reap the benefits of ICHRAs while addressing any concerns or challenges that may arise. Together, we can create a healthcare benefits solution that's tailored to your company's needs.
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