How to design an ICHRA?

Designing an ICHRA involves several key steps:

• Define Employee Eligibility Classes – Determine which employees will be eligible (e.g., full-time, part-time, seasonal, remote workers).
• Set Reimbursement Limits & Covered Expenses – Establish how much the employer will reimburse and whether it covers only premiums or includes additional medical expenses.
• Ensure Compliance & Reporting – Follow IRS, ACA, and ERISA guidelines, ensuring affordability if applicable.
• Create a Formal Plan Document – Outline plan details, reimbursement processes, and employee rights in a legally compliant document.
• Communicate the Plan to Employees – Provide clear instructions on how employees can participate, including how to submit proof of coverage and expenses.
• Partner with an HRA Administrator – Work with a third-party administrator or benefits consultant to streamline setup, compliance, and ongoing management.