An ICHRA is considered an ERISA Plan so there are specific areas of compliance that need to be addressed for this great option to be complaint. A few of these considerations are as follow:

  1. Plan documentation is required which includes a Master Plan Document, SBC and Summary Plan Description.
  2. Timely and specific communication with your employees is necessary.
  3. An ICHRA is subject to all ERISA non-discrimination requirements.

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A few additional considerations are as follows:

  1. You may offer different amounts of money to different classes of employees, but those amounts cannot vary past a certain amount and the classes available are outlined in the ICHRA ruling.
  2. You can offer money to an employee for medical expenses only, but those expenses must be in conjunction with a medical plan.
  3. An employer may allow the employees portion of their individual premium be deducted from wages on a pretax basis.