An individual coverage health reimbursement arrangement (ICHRA) is a fairly new type of health reimbursement arrangement in which employers of any size can reimburse employees for some or all of the premiums the employees pay for health insurance they purchase on their own. ICHRAs were created under regulations issued by the Trump administration in 2019, and became available as of 2020.
ICHRAs represent a departure from previous ACA implementation rules that forbid employers from reimbursing employees for individual market premiums. QSEHRAs, which became available in 2017, allow small employers to reimburse employees for individual market premiums. ICHRAs allow this for employers of any size, and they offer more flexibility in terms of how much an employer is allowed to reimburse an employee.
