ICHRA and Remodel Health FAQs

An individual coverage health reimbursement arrangement (ICHRA) allows organizations to provide tax-free contributions toward employees’ individual health insurance premiums. This gives employees access to personalized health coverage through individual plans.

Employees can use these contributions to purchase coverage through the Health Insurance Marketplace, a broker, or directly from an insurance company. With Remodel Health, employees can enroll in coverage right from our platform.

Both ICHRA and the qualified small employer HRA (QSEHRA) allow employers to provide tax-free contributions toward employees’ individual health insurance coverage. However, QSEHRA is only available to small employers with fewer than 50 full-time equivalent employees (FTEs). Unlike QSEHRA, employers of any size can offer an ICHRA. An ICHRA also provides more flexibility in how employers structure contributions, such as using employee classes.

One of the biggest questions employers have about ICHRA is whether employees can effectively choose and enroll in their own health coverage. Shopping for individual coverage can be especially challenging for employees who have limited experience with health insurance or fewer benefits resources available to them.

With the right ICHRA administrator, like Remodel Health, employees don’t have to navigate the process alone. Our platform makes it easy to compare and filter plans to fit their needs. Personalized enrollment support, licensed benefits advisers for those with complex medical situations, and ongoing guidance can help employees compare options, understand their coverage, and choose a plan that fits their needs.

Yes. The offer of a new ICHRA benefit is a qualifying life event. It creates a special enrollment period (SEP) for newly eligible employees to enroll in individual health plans outside of the annual Open Enrollment period.

Employers of any size can offer an ICHRA. Unlike some other HRAs, there are no minimum or maximum employer size requirements.

Organizations use ICHRA to:

• Replace an expensive group health insurance plan
• Offer health coverage for the first time
• Support remote teams and multi-state employees
• Provide more employee choice while maintaining predictable costs
• Offer the benefit to some classes of employees and traditional group coverage to other classes

Yes. When designed and administered correctly, ICHRA can satisfy Affordable Care Act (ACA) requirements. Applicable large employers (ALEs) can use an ICHRA to satisfy the ACA's employer mandate if they provide an affordable contribution. Then employees enroll in individual qualified health plans that satisfy minimum essential coverage (MEC) and minimum value.

There's no annual contribution limit for ICHRA. Employers determine contribution amounts based on their budget, workforce needs, employee classes, and benefits strategy. According to our 2026 National ICHRA Report, employers offered an average of $591 per month to self-only employees in 2025.

Remodel Health will work with you to create an ICHRA contribution strategy that works for your needs while satisfying the ACA.

Yes. Employers can vary contributions based on IRS guidelines for employee classes (full-time vs. part-time workers) and factors such as employee age and family size.

Yes. Employers can use a Section 125 premium-only plan (POP) alongside an ICHRA in certain situations.

A Section 125 plan allows employees to make pre-tax payroll deductions for eligible benefits. When paired with ICHRA, it can allow employees to use pre-tax dollars to cover their portion of off-exchange individual health insurance premiums when their premium costs exceed their employer’s ICHRA contribution.

It depends. If an employer offers an affordable ICHRA, employees generally aren't eligible for premium tax credits through the Health Insurance Marketplace. However, if the ICHRA is unaffordable under ACA rules, employees may be able to opt out of the ICHRA and claim premium tax credits if they otherwise qualify. Employers should work with their ICHRA administrator to understand affordability requirements and help employees evaluate their options.

Yes. Employers can offer ICHRA coverage to employees enrolled in Medicare. Medicare Parts A and B together and Medicare Part C qualifying as individual coverage for employee participation. Eligible employees can then use their ICHRA contributions to cover Medicare premiums.

Eligible employees must enroll in a qualified individual health insurance plan to participate in the ICHRA. This includes Medicare Parts A and B together or Medicare Part C.

Yes, but it depends on how the employer designs their ICHRA. Employees enrolled in an HSA-qualified HDHP can contribute to an HSA if their ICHRA reimburses only insurance premiums or is otherwise structured to preserve HSA eligibility. Employers should work with their ICHRA administrator to ensure the plan meets their benefits goals while maintaining HSA compatibility.

"The real risk to your client relationship isn’t ICHRA. It’s the renewal you can’t control or outpace. ICHRA gives brokers the opportunity to become more strategic advisors. Instead of delivering another painful increase, you can bring clients a budget-controlled strategy that improves employee choice and strengthens your relationship," Navarro said. "ICHRA doesn’t replace the broker. It’s a retention tool that helps you become the trusted advisor your clients can’t afford to lose."

“Anyone can build technology that works. What truly protects your client’s experience is the service behind it: helping employees navigate enrollment, answering questions, and providing the human support they need throughout the year,” Navarro said. “That’s where Remodel Health stands apart. Our team specializes in change management and becomes an extension of your HR team, ensuring employees feel supported, not left to navigate a new benefits experience on their own.”

"It’s a fair concern, but what’s often overlooked is that traditional group health plans require everyone to fit into the same set of options. ICHRA gives employees more choice, allowing them to select an individual plan that better fits their healthcare needs, including their preferred doctors and providers," Navarro said. "When ICHRA is introduced with the right education and support, the transition doesn’t have to feel disruptive. Employers gain cost control while employees gain more control over their coverage."

“You have to choose an ICHRA administrator that will give you confidence in their ability to partner with you to support employees," Waskom said. "An administrator like Remodel Health that handles applications, payments, and the day-to-day needs of employees well is critical to ICHRA working for your company.”

"Your employees certainly need experts to assist in picking the right health plan, but HR is no longer responsible for providing one network that works for everyone," Waskom said. "Each employee now gets to choose an individual health insurance plan that fits their medical needs."

Your employees with complex medical situations can meet one-on-one with Remodel Health’s licensed benefits advisors to talk through their options.

Many employers worry that moving to ICHRA means employees will lose access to familiar carriers, doctors, or provider networks. However, ICHRA gives employees the ability to choose an individual health plan that aligns with their personal healthcare needs.

Depending on their location and available options, employees may be able to select plans from well-known carriers and choose coverage based on factors that matter most to them, including preferred doctors, prescriptions, and networks.

Like any employee benefit, ICHRA comes with important compliance considerations. However, the right ICHRA administrator helps employers manage key responsibilities, including employee notices, ACA reporting requirements, eligibility requirements, affordability calculations, and ongoing regulatory obligations.

Partnering with an experienced administrator can help employers confidently manage compliance while focusing on their workforce and business.

“There’s no doubt about ICHRA being new to employees and a change from what they're used to. However, for many groups, the path that requires the least amount of change isn’t working anymore," Waskom said. "When administered properly, ICHRA is more similar to traditional group health insurance plans than many people realize. Employees still enroll in fully insured plans, receive guaranteed issue coverage, and use their health insurance the same way they would with a traditional group health plan.”

No. Becoming newly eligible for an employer-sponsored health benefit, such as an ICHRA, is a qualifying life event. This creates a special enrollment period (SEP), allowing eligible employees to enroll in an individual health insurance plan outside of the annual Open Enrollment period.

Remodel Health is a leading ICHRA administrator that helps employers design, implement, and manage individualized health benefits. Our ICHRA+ platform combines technology with personalized service to simplify every stage of the ICHRA experience for employers, brokers, and employees.

Mid-size and enterprise employers use ICHRA+ to transition from traditional group coverage to ICHRA. Our PeopleKeep platform is also available to help small employers offer a variety of HRAs, including QSEHRA and ICHRA.

Remodel Health combines ICHRA technology with a high-touch service model designed around the needs of employers, brokers, and employees. We have dedicated in-house teams focused on implementation, enrollment, customer support, and ongoing account management. This approach helps employers deliver a more personalized employee experience while confidently managing their individualized benefits strategy.

Our ICHRA+ platform makes it easy for employees to browse and compare individual health insurance plans.

Licensed benefits experts are also available to help employees with complex medical situations compare available individual plans, understand their options, verify provider networks and prescriptions, and enroll in healthcare coverage that meets their needs. We also have in-house Medicare advisors ready to help those who qualify.

Remodel Health provides personalized enrollment guidance, dedicated implementation support, and ongoing customer service to help employees understand their options and navigate questions throughout the year. Our team becomes an extension of the employer’s HR department, helping create a smoother benefits experience from enrollment through ongoing coverage.

Yes.

Our platform supports employers with:

• AutoPay for employees’ health insurance premiums
• Required ICHRA employee notices
• Eligibility verification
• ACA affordability calculations
• Ongoing regulatory requirements, such as the PCORI fee and filing instructions for Form 1095 reporting

Yes. Employers can transition to Remodel Health with support from our experienced implementation team. According to Remodel Health’s 2026 National ICHRA Report, transitions from other ICHRA providers increased by 137% in 2025, reflecting the growing number of employers seeking a more personalized, reliable ICHRA experience.

Learn more about switching your ICHRA administrator to Remodel Health.

Employers choose Remodel Health because they want:

• Personalized employee support
• ICHRA expertise
• A dedicated implementation team
• A technology platform built specifically for individualized health benefits
• Ongoing customer success support