What is an ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a tax-advantaged benefit for businesses of any size. Instead of providing health insurance directly, employers use an ICHRA to reimburse employees for the cost of their own individual health insurance and other eligible medical expenses. This approach replaces traditional group health insurance while giving employees choice and employers predictable costs.
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ICHRA Administrator Comparison
Why Businesses Choose Salusion
Simple, Low-Cost Pricing
No setup fees. No platform fees. No minimums. Pay only for employees who use it. The lowest-cost HRA on the market—simple, transparent, affordable.
Easy to Set Up. Easier to Administer
Set up your HRA in 15 minutes. From compliance to expense tracking to reimbursements, everything runs automatically. Salusion is the only small-business HRA with ACH reimbursements built in—so you spend almost no time managing it.
Built-In Employee Insurance Enrollment
Employees can compare plans and purchase individual health coverage directly through Salusion.
Real People. Expert Support
Most emails are answered in under an hour. Same-day Zooms with an expert give employers and employees confidence their issue will be solved quickly and completely.
Frequently Asked Questions
How do ICHRAs work?
An ICHRA runs on a 12-month plan year. Employers set a monthly allowance that can vary by employee class and can scale by age and family size. Employees are reimbursed for eligible expenses up to their balance. Salusion does not permit carryovers, allows a 75-day year-end runout, and has a 0-day termination runout.
Read the full guide →Who qualifies for an ICHRA?
Employees in an employer-defined class are eligible and must receive the benefit on the same terms and conditions, with exceptions allowed for variations based on age or family size. Tax-free reimbursement requires individual health insurance or Medicare that meets MEC.
Read the full guide →What is an ICHRA class?
An ICHRA class is a defined employee group an employer can offer an ICHRA to, such as full-time, part-time, salaried or hourly, geographic area, seasonal, waiting period, collectively bargained, nonresident aliens, and certain temporary employees. A class that gets an ICHRA cannot also get a group plan. Minimum class-size rules can apply when mixing ICHRAs and group plans across classes.
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