Step-by-Step

How ICHRA Works

Three steps. No catch. The math works because individual market rates are lower than small group in hundreds of counties.

1

Drop the Group Plan

Cancel your small group health insurance. In many counties, group premiums are 20-62% higher than individual rates for the same coverage level.

Ohio avg group
$810/mo
Ohio avg individual
$326/mo
2

Set Up an ICHRA

Give each employee a tax-free monthly allowance to buy their own ACA marketplace plan. You choose the amount — there are no minimums or maximums.

Define classes
Full-time, part-time, geographic
Set allowances
$200/mo, $500/mo — you decide
3

Everyone Saves

Employees get the same or better coverage at a lower price on the individual market. You pocket the difference. In the right county, that is thousands per year per employee.

Savings at Scale — Morrow County, OH
1 employee
$6,561
10 employees
$65,610
25 employees
$164K
50 employees
$328K

Tax Benefits

100%
Tax-deductible for employers
$0
Income tax for employees
$0
FICA taxes on ICHRA

Timeline

Week 1-2
Plan design and setup with ICHRA administrator
90 days before start
Employee notification (required by law)
Open enrollment
Employees shop for individual plans
Plan year starts
Monthly reimbursements begin — you start saving

Ready to see your savings?

Enter your county and see exactly how much ICHRA saves your business.

Explore Savings Map → Contact Us