If you accept an Individual Coverage Health Reimbursement Arrangement (ICHRA) from your employer, your employer will reimburse you for health coverage you buy on your own, such as a Marketplace plan or another individual policy.
How it works
Your employer gives you a set allowance of money each month to help pay for your health insurance premiums and certain medical expenses.
You choose and enroll in a Marketplace plan or other individual coverage that meets ICHRA requirements.
After you make payments for your plan, your employer reimburses you up to the allowance amount.
Important to know
Once you accept an ICHRA offer, you can’t receive Marketplace premium tax credits (subsidies)
If you use your ICHRA allowance for a Marketplace plan, you’ll pay the remaining premium cost out of pocket after reimbursement.
You’ll need to keep records of your payments in case your employer asks for proof of coverage or expenses.
If you don’t accept the ICHRA
You can decline the offer and apply for Marketplace savings, but only if your employer’s ICHRA offer is considered unaffordable under IRS rules.
Need help?
If you’re not sure whether to accept or decline an ICHRA offer, our Consumer Advocate team can help you understand your options. Call 855-772-2663, Monday–Friday, 6am–4pm PT.