Thursday, August 01, 2019

ICHRA, cha-cha-cha!

So the latest "shiny new thing" out on the employee benefits horizon is called the Individual Coverage HRA, or ICHRA for short. These are not to be confused with the previous "shiny new thing," QSEHRAs.

Thanks to the folks at Benefits Consulting Training (formerly NAABC), we have a recap of what these are all about (please see your own benefits advisor for details as they relate to your own situation):
■  Any employer can offer this HRA
■  Available to any employee not eligible for the employer group health plan and the employee is covered by an individual health insurance plan that meets ACA guidelines
■ Amounts can differ between classes of employees
■ The HRA can reimburse all Section 213(d) expenses and be designed to be compatible for those covered under an H S A health plan.
■  Employee portion of premium not paid by the HRA can be pay deducted pre-tax through a Cafeteria Plan.
■  Employers who want to offer this for January 1, 2020 need to begin working on their plan designs for the marketplace open enrollment periods beginning in October. 

These officially go live the first of next year, but if you're even remotely interested in learning about them, now's the time to start asking questions.

Keep in mind, though, that this may interfere with one's eligibility for Marketplace subsidies, and they're not available to pay for DPC or Sharing Ministry fees.

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