ICHRA Education

What is ICHRA?

The modern way for employers to offer health benefits — more choice for employees, lower costs for everyone.

TL;DR: ICHRA lets employers give employees tax-free money to buy their own health insurance. No group plan needed. No contribution limits. In 719 counties, this saves 20–62% vs small group rates.
62%
Max Savings
719
Counties Qualified
$6,561
Max Annual Savings
18
States

How ICHRA Works

Instead of buying a one-size-fits-all group health plan, employers set a monthly allowance for each employee. Employees shop for their own individual health insurance, then get reimbursed tax-free.

1

Employer Sets Budget

Choose a fixed monthly allowance per employee. No minimums, no maximums. Full cost control.

2

Employees Choose Plans

Each employee picks their own ACA marketplace or individual plan that fits their needs.

3

Tax-Free Reimbursement

Employees submit proof of coverage and get reimbursed tax-free each month. Simple.

Why ICHRA Saves Money

In hundreds of US counties, individual health insurance premiums are significantly lower than small group rates. This pricing gap exists because individual and small group markets are rated differently under the ACA.

Example: Morrow County, Ohio
Individual Plan
$331/mo
Small Group Plan
$878/mo
You Save
62.3%

Who Can Use ICHRA?

Any employer size
From 1 to 100,000+ employees
Any industry
Tech, retail, healthcare, etc.
Any structure
LLC, S-Corp, C-Corp, nonprofit
All 50 states
Works everywhere in the US

ICHRA vs Group Insurance

FactorGroup PlanICHRA
Cost controlLimited — premiums rise 5-10%/yrFull control — fixed budget
Employee choice1-3 plan optionsHundreds of options
Multi-stateComplex and expensiveBuilt-in, simple
Min. employeesOften 2-50+1+
Admin burdenHigh — renewals, complianceLow — set and forget
Annual renewalsComplex negotiationJust adjust allowance

See how much your county saves

Search 3,000+ US counties to see exactly where ICHRA beats small group insurance.

Explore the Savings Map →