ICHRAs: A Modern Health Coverage Solution for Business Owners

Originally Published on 2/1/24by Prof. Robert Bloink and Prof. William H. Byrnes

Many small business owners have long struggled with the complexities involved in providing employer-sponsored health insurance coverage. The options and requirements have only become more complex over the years. Employers with a diverse workforce often struggle to address vastly different sets of expectations and needs. Budgeting for the costs associated with various health insurance options can also be challenging. Individual health coverage arrangements (ICHRAs) can provide a powerful solution. Rather than attempt to offer multiple health coverage options at various price points for employees, business owners can control costs while allowing their employees to take control of these highly personal health-related choices by offering ICHRAs to various classes of employees in lieu of a traditional group health insurance option.

ICHRAs: The Basics

ICHRAs are a relatively new option, as they only became available in 2020.