Individual Coverage Health Reimbursement Arrangements

What is ICHRA?

An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a new type of reimbursement model that offers substantial flexibility to employers of all sizes. ICHRA contributions are fully funded with tax-free contributions by the employer to reimburse their employees for eligible medical expenses.

What makes an ICHRA unique is that the money can also be used by employees to pay for individual health insurance premiums. It’s a way for employers to reimburse their employees for insurance rather than buying it for them.

Benefits of an ICHRA

For the employer

  • Tax-deductible expense
  • Define benefit budgets and control health benefit costs
  • Removes burden of managing a health plan

For the employee

  • Tax-free benefit
  • Choice/flexibility/personalization of plans
  • Plan portability

Health coverage options for employees

With ICHRA, employees can shop for a BlueCross individual and family plan where they get access to the largest provider network in the state, quality healthcare coverage and other value-adds. 

For more information, please download our brochures below:

hand holding blue individual figure Hover image
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