Introduction to ICHRA
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.
Introduction to ICHRA
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.
