ICHRA Health Benefits for Small Businesses in Pennsylvania
Explore ICHRA options designed for flexibility and control - ideal for small businesses across Pennsylvania.
Setting Up ICHRA the Right Way in Pennsylvania
ICHRA works the same way under federal rules everywhere, but how your employees actually use it depends on where they live.
Enrolling Through Pennie
Pennsylvania runs its own health insurance marketplace, Pennie, rather than using the federal healthcare.gov. When an employee uses their ICHRA allowance to buy an individual plan, they enroll through Pennie, which is also the only place PA residents can access available premium tax credits.
A State-Run Reinsurance Program
Since 2021, Pennsylvania has operated its own reinsurance program under a federal waiver, helping keep individual market premiums more stable than they would be otherwise. That's part of the backdrop your employees' ICHRA dollars work within here.
Getting ICHRA right in Pennsylvania means understanding how it fits with Pennie and the state's approach to the individual market, not just the federal rules. We help you get that right from the start.
Based in the northeastern part of the state? Learn how we work with employers across Northeastern Pennsylvania, including how rating areas can change what your employees see.
Schedule a Free ICHRA Consultation
Talk directly with a licensed advisor to see if ICHRA is the right fit for your business.
Get clear answers. We’ll walk through your options, budget, and employee setup so you can decide with confidence.
Don’t wait - secure your personalized ICHRA strategy session today.
Compare Your Options: ICHRA vs. Group Health Insurance
| Key Factor | ICHRA | Small Group Health Insurance |
|---|---|---|
| Cost Control | ✔ High – you set a monthly budget | – Moderate – premiums can increase |
| Admin Time | ✔ Low – no plan renewals | – Moderate – more paperwork and prep |
| Employee Choice | ✔ High – any ACA-compliant plan | – Medium – limited by carrier options |
| Flexibility | ✔ High – works across locations/states | – Medium – depends on carrier rules |
| Compliance | ✔ Full ACA compliance when designed right | ✔ Must meet ACA and state rules |
ICHRA
✔
Cost control
You set a monthly budget
✔
Admin time
Low, no plan renewals
✔
Employee choice
Any ACA-compliant plan
✔
Flexibility
Works across locations/states
✔
Compliance
Full ACA compliance when designed right
Group Plan
–
Cost control
Premiums can increase
–
Admin time
More paperwork and prep
–
Employee choice
Limited by carrier options
–
Flexibility
Depends on carrier rules
✔
Compliance
Must meet ACA and state rules
Work With a Licensed ICHRA Advisor
Health & Benefits Partners helps small businesses implement ICHRA the right way:
Compare ICHRA vs. Traditional group plans
to help you choose the best fit
Build custom classes
based on job role, location, or hours
Streamline onboarding
includes documentation, notices, and plan setup
Support plan selection
guide employees on plan selection (on or off exchange)
Stay compliant
ensure IRS, DOL, and ACA compliance (including COBRA)
Track reimbursements
use dedicated tools for HRA reimbursement tracking
We make it seamless. You stay in control. Your employees get more choices.
Frequently Asked Questions (FAQs)
Do my employees have to use Pennie to buy a plan with their ICHRA allowance?
Not exclusively, but Pennie is the only place PA residents can access premium tax credits, so most employees choosing to use their allowance toward a subsidized plan will enroll there. They can also buy an ACA-compliant plan off-exchange if they prefer.
Does Pennsylvania's reinsurance program affect how I should set my ICHRA allowance?
It's one factor worth knowing about. Pennsylvania's state reinsurance program works to keep individual market premiums more stable than they'd be otherwise, which is useful context when deciding how much to budget per employee. Your advisor can walk through current plan costs with you directly.
Is ICHRA the same as a CHOICE Arrangement?
Not yet. CHOICE (Custom Health Option and Individual Care Expense) is a proposed name from federal legislation that would write ICHRA into statute. As of July 2026, the CHOICE Act (S.2875) and its House companion (H.R.5463) remain in committee and have not become law. ICHRA is still the correct term and the rules have not changed. We are monitoring the legislation and will update our clients if it passes.
Meet Our Small Group and ICHRA Advisors
New to ICHRA? Learn the basics, compare it to a traditional group plan, and see if it's the right fit for your business on our full ICHRA guide.
Ready to Explore ICHRA?
Let’s talk through your team’s goals and see if ICHRA is the right fit for you.
Compliance & References
ICHRA Guidance & Regulations
All ICHRA plans must comply with federal regulations outlined in:
- IRS Notice 2018-88
- Final Rule issued by the U.S. Departments of the Treasury, Labor, and HHS (June 2019)
Additional requirements include:
- Employers must provide a 90-day written notice to employees prior to the start of an ICHRA plan year.
- Minimum essential coverage (MEC) is required for employee reimbursement eligibility.
Trusted Sources
This content is provided for informational purposes only and does not constitute legal or tax advice. Please consult your legal or tax advisor to determine how regulations apply to your situation.
We are compensated by the insurance carriers for policies you choose through us. There is no direct cost to you. Compensation may vary by carrier and product. Information on this page is for educational purposes and does not constitute legal, tax, or accounting advice. Please consult your professional advisors about your specific situation. Tax treatment of ICHRA reimbursements can vary by employer and employee. We are licensed to advise clients in Pennsylvania, New Jersey, and Delaware. Contact us to confirm availability in other states.
