What are the benefits of an ICHRA for employers? For employees?

What are the benefits of an ICHRA for employers? For employees?

What are the benefits of an ICHRA for employers? For employees?

For Employers

  • Predictable healthcare budgeting with fixed monthly allowances
  • Flexibility to set different allowance amounts for different employee classes
  • Scalable for any employer size—no participation requirements to meet
  • Reduced administrative burden compared to managing group plan renewals and carrier negotiations
  • Tax-deductible contributions

For Employees

  • Freedom to choose a health plan that fits individual or family needs
  • Portability—employees own their policy and can keep it if they change jobs
  • Tax-free reimbursements
  • Access to a broader range of coverage options through the marketplace, private exchanges, or directly from carriers

For a deeper look at how these benefits compare to a traditional group health plan, see: How does an ICHRA differ from a traditional group health plan?

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