ICHRAs: A Powerful Alternative to Employer Provided Health Insurance

by Prof. Robert Bloink and Prof. William H. Byrnes

Alternative funding solutions have become incredibly popular among employers seeking to offer health insurance coverage to employees. Traditional health insurance rates have skyrocketed in recent years. Self-funding can create a number of challenges that are often unattractive to business owners. Over the years, however, alternative solutions have emerged so that employers are no longer obligated to choose between self-funding and fully insured status. Individual coverage health reimbursement arrangements (ICHRAs) are among those funding alternatives. Exploring innovative and evolving options like ICHRAs may be the key to giving employers the ability to stabilize employee health expenses while offering employees a powerful health benefit.

ICHRAs: The Basics