The Individual Coverage Health Reimbursement Arrangement (ICHRA) is a health benefit pioneered by regulations that came into effect in January 2020. Designed to provide employers with a flexible method to offer health benefits, ICHRA allows businesses of any size to reimburse employees, tax-free, for their healthcare expenses, including individual health insurance premiums. This system marks a significant shift from the traditional group health insurance policies, offering a personalized approach to health benefits. Understanding the tax implications of ICHRA reimbursements is crucial for both employers and employees navigating this new terrain.
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