Flexible Health Benefits Without the Hassle of a Group Plan

Explore ICHRA options designed for flexibility and control - ideal for small businesses in PA, NJ, and DE.

Looking for a simpler way to offer health benefits to your employees?

An Individual Coverage Health Reimbursement Arrangement (ICHRA) lets an employer of any size reimburse employees tax-free for their own individual health insurance, instead of managing a traditional group plan.

You set a monthly tax-free reimbursement budget for each employee, your employees choose their coverage, and everyone stays protected - whether they’re in-office or remote.

In practice, it comes down to three moves. You decide what to offer, and you can set different amounts for different employee groups. Your employees pick the plan that suits them, on or off the marketplace. Then you reimburse their premiums, typically through payroll or with help from an administration partner. Want to see how a typical year plays out? Our guide, What Is an ICHRA and How Does It Work?, walks through it from start to finish. If you would rather keep a group plan and add help with out-of-pocket costs, see what a MERP is.

It’s flexible, tax-advantaged,
and fully compliant with current ACA requirements.

Team discussing employee health benefits and coverage options

Why Employers Choose ICHRA

ICHRA gives employers a flexible, compliant way to offer health benefits without managing a traditional group plan.

Flexible, Tax-Free Reimbursements

Set a monthly allowance and reimburse employees tax-free for their own health insurance, instead of managing a traditional group plan.

Simple, Low-Admin Setup

No group enrollment, COBRA setup, or plan negotiations, just a straightforward, technology-driven process.

Employee Choice, Any State

Employees choose the coverage that fits them best, on or off the Marketplace, wherever they live and work.

ACA and IRS Compliant

Stay compliant with ACA, IRS, and DOL rules with expert guidance every step of the way.

With ICHRA, you get predictable costs, less admin work, and a benefit your team can actually use, wherever they are.

The Fine Print, Made Simple

A few regulatory details worth knowing as you decide whether ICHRA is right for your business.

No minimum participation rules

No employer premium contributions required

Satisfies the ACA employer mandate if affordable coverage is offered

Schedule a Free ICHRA Consultation

Talk directly with a licensed advisor to see if ICHRA is the right fit for your business.

Advisor reviewing client coverage documents during an ICHRA consultation

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.

Is ICHRA Right for Your Business?

Your advisor at Health & Benefits Partners can walk you through the decision, comparing traditional group plans vs. ICHRA to help you choose the right fit.

✔ Strong fit for many small businesses

ICHRAs are a strong fit for many small businesses in Pennsylvania, New Jersey, and Delaware, especially if:

✔

Hiring Remote Employees You’re hiring remote or out-of-state employees

✔

First Time Offering Benefits You’re offering health benefits for the first time

✔

Leaving Group Plans You want to explore moving away from a traditional group plan or COBRA

✔

Personalized Coverage You want to offer employees more personalized coverage

✔

Business Growth You’re seeking a simpler, scalable approach that grows with your business

✔

Budget Predictability You’re tired of unpredictable rate hikes and want more control over budgeting

! Not always the right fit if:

ICHRAs can be very effective, but there are situations where a traditional group plan may still make more sense.

✖

Established Group Plan Your business already has a well-established group plan that employees strongly prefer

✖

Limited Plan Choices You’re in a market where employees have limited individual plan choices

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

Find the best fit for your team

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)

Can I offer ICHRA to part-time employees?

Yes – you can choose to include part-time staff as a separate class with its own budget, as long as it’s applied fairly.

How does ICHRA affect ACA subsidies?

If your ICHRA offer is deemed affordable under ACA rules, employees aren’t eligible for subsidies. If unaffordable, they may decline the ICHRA and qualify for subsidies on the Marketplace.

Do employees need to buy through the Marketplace?

No. They can enroll in any ACA-compliant plan, on or off the exchange.

How are reimbursements handled?

Employees submit proof of premium payments, and you reimburse them directly – typically through payroll or a third-party administrator.

Is COBRA still required?

Yes, for employers with 20+ employees. ICHRA must offer continuation under federal COBRA.

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.

What Our Clients Are Saying

★★★★★

Our experience with Health & Benefits Partners has been outstanding. We are a small firm, a boutique agency, and we have been astounded and pleased by the time and counsel Adam and his team have taken to answer our questions, help us assess our needs, and understand our solution options. Thank you, Health & Benefits Partners. We appreciate your partnership.

Martha H. • 5-star Google review

Meet Our Small Group and ICHRA Advisors

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Compliance & References

ICHRA Guidance & Regulations

All ICHRA plans must comply with federal regulations outlined in:

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.

Disclosures

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.