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Barbara Weltman

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ICHRAs Are Growing

July 15, 2023 / By Barbara Weltman

Individual Coverage Health Reimbursement Arrangements (ICHRAs) allow companies of any size to reimburse employee medical expenses, such as monthly premiums and out-of-pocket costs (e.g., copayments, deductibles) and are an alternative to traditional employer-provided group health insurance. According to the HRA Council, there’s been a 171% increase in the number of ICHRAs offered to employees from 2022 to 2023. Historically, small employers have used them as their health care solution. But the number of applicable large employers (ALEs with 50 or more full-time and full-time equivalent employees) using ICHRAs as a health benefits solution grew by 144% between 2022 and 2023. When setting policy for 2024, employers of all sizes should explore ICHRAs as a possible health benefits solution for them. #IdeaoftheDay

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