HRAs reimburse employees for certain medical costs. Depending on the plan, such expenses may include doctor visits, medical procedures and prescriptions. An employee must be enrolled in their employer’s group health plan to qualify for an HRA.
ICHRAs are a bit different. These accounts can reimburse employees for certain medical expenses, insurance premiums or both. Whether an ICHRA will cover both premium and medical expenses is up to the employer.
To qualify for an ICHRA, an employee must enroll in individual health coverage using a Health Insurance Marketplace (Marketplace), a private insurer, Medicare or another method. In other words, an individual cannot be enrolled in an employer’s group health plan and qualify for an ICHRA.
ICHRAs can also be offered to different employee segments, adding even greater flexibility for employers. Reach out today to learn more about this exciting plan type and how it can help reduce your organization’s overall health care spending.
The information in this newsletter is intended for informational use only and should not be construed as professional advice. © 2021 Zywave, Inc. All rights reserved