Alternative health insurance and ICHRA overview
Rising healthcare costs don't have to limit your options. With an Individual Coverage Health Reimbursement Arrangement (ICHRA), your business can set a predictable budget for health benefits while empowering employees to choose the coverage that works best for them. Our team provides one-on-one consulting to your employees, helping them navigate the individual insurance marketplace and make confident, informed decisions. It's a smarter, more flexible way to offer benefits that work for everyone.
ICHRA benefits for employers
- Fixed contributions: Employers set a defined monthly allowance for employees to purchase their own health insurance, helping control costs and allowing cost predictability.
- Tax deductibility: Employer contributions are tax-deductible.
- Administrative efficiency: Reduce the time your team spend annually evaluating, managing and selecting a health plan.
- Regulatory compliance: Our experts keep you fully compliant with state and federal regulations.
- Enhanced recruitment and retention: Competitive benefits and diverse health plan options can increase employee satisfaction.
*Access to federal and state-approved health plans varies each calendar plan year.
Understand the key differences for small businesses with this side-by-side comparison of ICHRA vs. Traditional Group Health Plans
|
ICHRA PLAN |
GROUP HEALTH PLAN |
|
|
Cost Control |
Employer sets a fixed monthly allowance. |
Employer pays a portion of premiums, which can increase annually. |
|
Plan Choice |
Employees choose their own individual plans. |
Employer selects one or a few plans for all employees. |
|
Flexibility |
Highly customizable by employee class (e.g., full-time, part-time, remote). |
Limited flexibility; usually one-size-fits-all. |
|
Tax Benefits |
Employer contributions are tax-deductible; reimbursements are tax-free for employees. |
Similar tax benefits for employer and employee. |
|
ACA Compliance |
Can meet ACA employer mandate if designed properly. |
Typically meets ACA requirements by default. |
|
Administrative Burden |
Lower; no need to manage a group policy. |
Higher; involves plan selection, renewals, and compliance. |
|
Portability |
Employees keep their plan if they leave the company. |
Coverage ends when employment ends. |
|
Minimum Participation Requirements |
None. |
Often requires a minimum % of employees to enroll. |
|
Employee Experience |
More choice, but may require more effort to shop for plans. |
Less choice, but simpler enrollment process. |
Let's build a better benefits strategy together
Choose Gallagher for a strategic approach and our expertise in this emerging space. Let us help you navigate the complexities of healthcare and ICHRA solutions with confidence and ease. Our goal is to make health insurance simpler, more affordable and more effective for you and your employees.
Want to learn more? Contact our small business consultants today!