What’s Individual Coverage HRA (ICHRA)?
ICHRA (Individual Coverage Health Reimbursement Arrangement) is a customizable, flexible, and personalized health benefit that allows employers to reimburse employees for their health insurance premiums and medical expenses.
What are ICHRA health plans?
ICHRA health plans are an attractive option for businesses because they offer flexible and cost-effective healthcare solutions. Available to companies of all sizes, ICHRAs allow employers to provide personalized benefits, whether they have part-time or full-time employees.
What are ICHRA employee classes?
ICHRA employee classes allow businesses to customize their health benefits by grouping employees based on factors like hours worked or geographical location. This flexibility lets employers tailor health plan offerings to different classes, making it easier to manage budgets and provide the right benefits for each group of employees.
ICHRA reporting guide
ICHRAs come with compliance and reporting requirements that employers need to be aware of, including ACA, PCORI, ERISA, and Medicare Part D reporting. This ICHRA guide breaks down these obligations and shows how Thatch streamlines the process, making it easier for employers to stay compliant.
ICHRA benefits
ICHRA allows companies to provide healthcare for their teams in a more personal, flexible, and affordable way.
Personalized Health Coverage
With an ICHRA, offer your team a monthly allowance to spend on healthcare their way—from insurance to out-of-pocket costs like prescriptions or medical bills.
Flexibility in Benefits Design
ICHRAs let employers tailor health benefits to employees' needs, adjusting allowances based on family size, age, or location for equitable access.
Cost Control
Employers set predefined allowances, offering financial predictability and a cost-effective alternative to traditional health plans.
Simplified Administration
Thatch simplifies ICHRA management, reducing the time and effort needed to set up and maintain health benefits programs.
Tax Advantages
Employers can deduct reimbursements, and employees can pay premiums with pre-tax dollars, creating tax savings for both.
Increased Employee Satisfaction
ICHRAs let employees choose health plans that meet their needs, leading to higher satisfaction and retention.
How does ICHRA compare to group health plans?
ICHRA | Group Plans | |
|---|---|---|
Cost Control Set a defined budget for each employee to avoid annual rate hikes | ||
Ease of Administration Shift administrative burden to the individual insurance companies | ||
Participation Flexibility Avoid minimum participation requirements | ||
Customization Employees can select a plan that aligns with their specific healthcare needs | ||
Employee Empowerment Employees can use leftover funds for other healthcare expenses |
How ICHRA plans work with Thatch
ICHRAs are a super powerful way to give your team healthcare, but come with significant complexity and compliance requirements. Thatch manages all of the complexity associated with administering an ICHRA; we handle budgeting, insurance plan selection, money movement, compliance, reporting, and more. Thatch is the easiest way to provide an ICHRA for your team.
Save money while providing better benefits
Most employers using Thatch save money with ICHRA compared to group health plans. ICHRA lets you set tailored allowances for each employee, preventing overspending in some markets and underspending in others.
Monthly healthcare budget
$545
For individuals
$845
For individuals + spouse
$1145
For families
ICHRA frequently asked questions
Create the healthcare experience your employees deserve
Thatch works for companies of all sizes and takes minutes to set up.