Health insurance premiums continue to rise at an alarming pace, leaving employers of all sizes looking for innovative solutions to control costs while still providing quality benefits. One option that has gained significant traction in recent years is the Individual Coverage Health Reimbursement Arrangement (ICHRA).
An ICHRA allows employers to designate funds that employees can use – tax free – to purchase individual health insurance coverage (including Medicare premiums). Employers can also choose to allow reimbursement for eligible out-of-pocket expenses like medical, dental, and vision care.
Benefits of an ICHRA
- Budget Friendly: Employers control costs by setting defined contribution amounts.
- Flexibility: Works for both employers and employees, giving employees choice and employers control.
- Talent Attraction & Retention: Offers competitive benefits in today’s tight labor market.
- ACA Compliance: Considered minimum essential coverage and employer contributions are deemed affordable when designed properly.
- Tax Advantages: Contributions are tax-free for both employer and employee.
Why Diversified Benefit Services?
Not all ICHRA administrators are the same. Diversified’s “Next Generation ICHRA” platform stands out with:
Automated & Direct Deposit Reimbursements to Employees – eliminating claim delays and reducing administrative errors.
Comprehensive Processing – covering premiums including Medicare and eligible out-of-pocket expenses.
Tailored Plan Design – customized to fit the needs of each employer.
Dedicated Service – claims specialists, employee education, and on-site support.
A Modern Benefit Strategy
Whether you already partner with Diversified for FSA, HRA, HSA, or COBRA services, you may not be aware that we also administer ICHRAs. For employers navigating the reality of escalating health plan costs, ICHRAs can provide a sustainable and compliant path forward.
Request a quote or contact us at (800) 234-1229 to learn more about ICHRAs and how Diversified can support your organization.
Compliance Focused. Service Driven.