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What is an ICHRA?

An individual coverage health reimbursement arrangement (ICHRA) expands the HRA health benefits your employer offers.

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New to an ICHRA? Learn the basics.

ICHRAs put more decision-making power in the hands of employees, letting them choose their own insurance and reimbursing for the costs, rather than the employer choosing the insurance plan.

If offered by your employer, an ICHRA gives you more flexibility to select the insurance plan that works best for you and your family.

An ICHRA can cover insurance premiums and out-of-pocket health care expenses, depending on the plan design.

Here's how it works:

  • Employers design the plan and set reimbursement amounts.
  • Employees purchase their own qualified individual medical plan.
  • Employees submit claims and are reimbursed for their expenses.
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Quick and easy reimbursements

Pay for eligible insurance premiums and health care expenses with a personal credit card, check or cash. Retain an itemized receipt for documentation. Then, submit a claim for reimbursement to your account, along with a receipt showing the following:

  • The name of the insurance provider, doctor or other service provider, pharmacy or store
  • The date of service or purchase
  • A description of the service(s) or item(s) purchased
  • The amount charged (or what the employee is responsible for paying)
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An individual coverage health reimbursement arrangement (ICHRA) is an expansion of health reimbursement arrangement (HRA) services.

Employers may elect to offer an ICHRA as part of their plan designs, as well as determine eligibility, reimbursement amounts, and eligible expenses.

Yes, an ICHRA is a type of HRA. It provides pre-tax employer contributions to use toward eligible expenses.

An ICHRA is a benefit offered by an employer. Check with your benefits department or human resource representative to determine if you are eligible for this plan

Employers can designate the ICHRA to include any of the following:

  • Insurance premiums only
  • Insurance premiums + qualified medical expenses (items like doctor’s visits and copays, prescriptions, dental treatment, eyeglasses and lenses, and more)

Check your plan information for items available for reimbursement under your ICHRA benefit.