Once an employee’s insurance premium or out-of-pocket expenses are approved, the business reimburses them up to their allowance amount. It’s that simple, and can satisfy all ACA mandates for large businesses.
Different Than An HRA
ICHRA is different than a traditional HRA for two reasons. First, an ICHRA can reimburse individual insurance premiums, whereas an HRA cannot. Second, an ICHRA works with individual insurance plans, while an HRA can only be used with a group health plan.