ICHRA

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ICHRA – What is it?

An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a modern, flexible way for employers to offer health benefits—without the rising costs, renewals stress, or plan-picking burden that comes with traditional group health insurance.

Instead of choosing one plan for everyone, employers set a tax-free reimbursement allowance, and employees choose the health plan that works best for their needs, budget, and lifestyle.

This approach puts decision-making back into the hands of employees while helping employers control costs with total predictability.

HOW ICHRAs WORK

The employer chooses a benchmark plan and sets a reimbursement amount.

The employee purchases an individual health plan pre tax.

The employer reimburses the employee for premium up to the set amount.

Why Employers Are Turning to ICHRA

Traditional group insurance renewals continue to rise, often leaving employers with limited options. ICHRAs provide an alternative that:

  • Gives employees more control and choice
    Employees can shop for individual health coverage that fits their unique medical needs, doctors, and budgets.

  • Creates predictable employer spending
    Set a fixed monthly reimbursement amount that works for your business.

  • Reduces administrative burden
    No more selecting annual plans for the entire workforce or navigating complex renewals.

  • Allows tax-advantaged savings
    Reimbursements are tax-free for both employers and employees when used for qualified premiums.

Why Partner with PA Chamber Insurance?

Unlock the full potential of an ICHRA with a partner that makes the process effortless. PA Chamber Insurance delivers the expertise, tools, and support you need to build a smarter, more flexible benefits strategy.

pa chamber insurance faviconExpert Guidance That Simplifies Everything
We break down the ICHRA model, evaluate your options, and help you choose a solution that aligns with your goals—so you can make confident decisions without the confusion.

Clear, Engaging Employee Education
From onboarding materials to ongoing support, we ensure your team understands how to use their new benefit and feels empowered to pick the coverage that’s right for them.

Strategic Program Design
We help you select benchmark plans, set competitive reimbursement amounts, and design an ICHRA that strengthens recruitment, retention, and overall employee satisfaction.

ICHRAs allow employers to maintain a competitive benefits package—without the challenges and rising costs of traditional group plans. With the right strategy, employees get more choice, employers get more control, and everyone benefits from a streamlined, tax-advantaged approach to healthcare.

Consultation, Education, and Strategy – PA Chamber Insurance can help! Get a quote today.
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