Individual Coverage HRA with SimplyHRA

The cat's out of the bag: traditional employee health insurance is broken.

"One-size-fits-all" group plans are meant to simplify administration. In reality, that's not much of an uptake considering the drawbacks of traditional group healthcare.

This includes:

• High, unpredictable costs
• Little to no employee customization
• High participation requirements
• No portability

Individual Coverage Health Reimbursement Arrangement (ICHRA) directly addresses these issues.

What is ICHRA?

ICHRA is an IRS-approved alternative to traditional group health plans.

As a modern HRA or Custom Health Option and Individual Care Expense (CHOICE) Arrangement, ICHRA enables employers to set fixed reimbursement allowances for specific employee classes.

In turn, employees are given the freedom to choose their own individual health insurance. They can also use their reimbursement funds to pay for a long list of qualified medical and dental expenses, such as:

• Prescription medication
• Doctor visits
• Annual Physical Exam (APE)
• Dental treatments
• Eye care services
• Hearing aids
• Psychiatric care

Why Choose ICHRA for Employers

• Complete financial control. No more surprise premium hikes. Once you set your reimbursement allowances, it stays throughout the plan year.
• Tax savings. Employer contributions through ICHRA are tax-deductible as business expenses. They're also not subject to employer-matching payroll taxes.
• No size or participation requirements. Any business with at least one full-time employee can offer ICHRA. You also don't have to worry about participation minimums.
• Effortless administration. Modern ICHRA runs through visual platforms or fully managed Third-Party Administrators (TPAs). Time-consuming aspects like compliance and reporting are automated either through software or a team of ICHRA advisors/experts.

Why Choose ICHRA for Employees

• Customizability. Under ICHRA, employees are given autonomy to choose their own individual health insurance as well as use their reimbursement allowance for qualified medical expenses. And with employees in charge of their ICHRA allowance utilization, they get the opportunity to tailor their healthcare budget to their unique needs.
• Portability. Individual health insurance policies purchased through ICHRA belong to employees. That means they can take their coverage with them as they move on to a different employer.   
• Tax benefits. ICHRA reimbursements for insurance and other medical expenses are tax-free. Employee contributions can also be paid on a pre-tax basis, reducing taxable income.

Administration Made Easy with SimplyHRA

Switching to ICHRA is easier than ever.

With SimplyHRA, get your ICHRA plan up and running in no time.

Take advantage of done-for-you compliance, seamless integrations, built-in AI, and a drag-and-drop, self-service interface for easy plan management. In the meantime, employees can use the mobile app version to upload receipts and submit reimbursement requests right from where they are.

Learn more about SimplyHRA today — book a private consultation here and let's talk!