Today, we’re tackling an essential question related to Individual Coverage Health Reimbursement Arrangements (ICHRA): Who is eligible for this innovative healthcare option? If you’re new to the ICHRA world or need a refresher, check out our previous blog post, “What is ICHRA and how does it work?”
Now, let’s dive into the specifics of ICHRA eligibility for both employers and employees.
Employer Eligibility
Good news! Any size employer can offer an ICHRA to their employees. From small startups to large corporations, ICHRA provides a flexible and personalized health insurance solution.
Employee Eligibility
Employee eligibility for ICHRA depends on two key factors: employee class and individual health insurance coverage.
Employee Class:
Employers can establish different classes of employees and decide which classes are eligible for ICHRA. Examples of employee classes include full-time, part-time, seasonal, or employees based on geographic location. Employers can also set different reimbursement levels for each class, allowing for flexibility and customization.
Individual Health Insurance Coverage:
Employees must have individual health insurance coverage that meets the minimum essential coverage (MEC) requirements under the Affordable Care Act (ACA) to be eligible for ICHRA. This coverage can be acquired through the Health Insurance Marketplace or other sources, such as a spouse’s plan or Medicare.
Keep in mind that employees who are offered an ICHRA and have affordable coverage available to them will not be eligible for premium tax credits on the Health Insurance Marketplace.
ICHRA offers a flexible and personalized health insurance option for a wide range of employers and employees. Understanding the eligibility requirements for both parties is essential to making the most of this innovative approach to healthcare.
If you’re considering ICHRA for your organization or as an employee, consult with a Remodel Health benefits advisor to ensure you’re making the best choice for your specific needs.
Important Notice: Remodel Health does not intend to provide specific insurance, legal, or tax advice. Remodel Health always recommends consulting with your own professional representation to properly evaluate the information presented and its appropriate application to your particular situation.