The Future of Employee Health Benefits with ICHRA

Brought to you by Zorro
Table of Contents

In today's dynamic job market, employers are constantly seeking innovative ways to offer comprehensive benefits to their employees. One such solution gaining popularity is the Individual Coverage Health Reimbursement Arrangement (ICHRA) that provides employees with more personalized plans, a range of options, budget control, and enticing tax advantages. Let's delve into the benefits that make ICHRA a beneficial option for employees.


One of the standout features of ICHRA is the flexibility it provides to employees’ health insurance options. Unlike traditional, one-size-fits-all group insurance plans, ICHRA allows employees to choose their own medical insurance plan based on their personal needs. In some states, employees could have access to over 100 different plans. 

<blog-icon-title>Employer Contribution & Employee Tax Benefits<blog-icon-title>

ICHRA’s flexibility also affects the way employees leverage their employer’s contribution towards healthcare benefits. Because ICHRA shifts employers from a “defined benefit” to a “defined contribution,” employees are able to choose the healthcare plan that is right for them without worrying about a mismatch between the cost of the plan and how much their employer is contributing towards health benefits. For example, an employee who may not need a great deal of coverage may purchase a plan that is below the employer-sponsored budget and then utilize the excess funds to cover a range of allowed medical expenses without needing to contribute any money themselves. Conversely, if an employee requires more expansive coverage and needs to purchase a more expensive plan, they can contribute additional tax-free funds on their own. 

Did someone say tax-free? YES! Employees can make sure they are maximizing their take-home pay because their contributions toward an ICHRA plan are tax-free. This unique tax advantage serves as an incentive for both employers and employees to adopt ICHRA.

<blog-icon-title>Continuity & Portability<blog-icon-title>

Last but not least, ICHRA provides a unique advantage when it comes to continuity of coverage. Traditional group insurance is tied directly to employment, putting employees at risk of a sudden loss of health coverage should they be unexpectedly furloughed or terminated. With ICHRA, employees can maintain their health insurance even if they switch employers and are able to pay the premium on their own in the interim. This portability ensures that individuals and their families can enjoy uninterrupted access to healthcare services, regardless of career transitions. The peace of mind provided by continuous coverage is invaluable, particularly during periods of volatility within the job market.

Is ICHRA sounding like the right fit for you and your team? Let’s set up a demo and see how we can make sure your employees are accessing all of these benefits!

Get the smart, transparent benefits solution that you've been waiting for.

Contact Us

We are committed to your privacy! Check out our Privacy Policy & Cookie Policy