An Individual Coverage Health Reimbursement Arrangement (ICHRA) lets employers reimburse employees tax-free for individual health insurance premiums instead of buying a group plan.

When was ICHRA created?

ICHRA became effective January 1, 2020 through a joint rule by the IRS, Department of Labor, and HHS.

Is there a contribution limit?

No. Unlike QSEHRA, there are no annual limits on how much an employer can contribute to an ICHRA per employee class.

ICHRA education

What is ICHRA?

The modern way for employers to offer health benefits — more choice for employees, lower costs for everyone.

TL;DR: ICHRA lets employers give employees tax-free money to buy their own health insurance. No group plan needed. No contribution limits. In 1309 counties, this saves an estimated 20–63% vs small-group rates.

62%

Max savings

1309

Counties qualified

$12,121

Max annual savings

States

How ICHRA works

Instead of buying a one-size-fits-all group health plan, employers set a monthly allowance for each employee. Employees shop for their own individual health insurance, then get reimbursed tax-free.

Employer sets a budget

Choose a fixed monthly allowance per employee. No minimums, no maximums. Full cost control.

Employees choose plans

Each employee picks their own ACA marketplace or individual plan that fits their needs.

Tax-free reimbursement

Employees submit proof of coverage and get reimbursed tax-free each month. Simple.

Why ICHRA saves money

In hundreds of US counties, individual health insurance premiums are significantly lower than small-group rates. This pricing gap exists because individual and small-group markets are rated differently under the ACA.

Example: Morrow County, Ohio

Individual plan

$602/mo

Small-group plan

$1,612/mo

You save

62.7%

Who can use ICHRA?

Any employer sizeFrom 1 to 100,000+ employees

Any industryTech, retail, healthcare, and more

Any structureLLC, S-Corp, C-Corp, nonprofit

All 50 statesWorks everywhere in the US

ICHRA vs group insurance

Factor	Group plan	ICHRA
Cost control	Limited — premiums rise 5–10%/yr	Full control — fixed budget
Employee choice	1–3 plan options	Hundreds of options
Multi-state	Complex and expensive	Built-in, simple
Minimum employees	Often 2–50+	1+
Admin burden	High — renewals, compliance	Low — set and forget
Annual renewals	Complex negotiation	Just adjust the allowance

See how much your county saves

Search 1309+ US counties to see exactly where ICHRA beats small-group insurance.

Explore the Savings Map → Talk to an Expert

See what your company could save

County-specific 2026 numbers, about 30 seconds, no contact info needed.

How many employees do you have?

75 employees

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