Skip to main content
Employer Benefits IQ
Plan Design

Individual Coverage HRA (ICHRA)

An HRA that reimburses employees for individual health insurance premiums.

LinkedInX

Full Definition

An ICHRA allows employers of any size to reimburse employees tax-free for individual health insurance premiums and qualified medical expenses. Unlike traditional group health plans, ICHRAs let employees choose their own individual coverage. Employers can vary ICHRA amounts by employee class (full-time, part-time, seasonal, etc.) and must set minimum contribution amounts to satisfy ACA employer mandate requirements.