ICHRA

Individual Coverage Health Reimbursement Agreement

Built for Flexibility. Designed for Savings.

Health benefits shouldn’t feel like a burden. With an Individual Coverage Health Reimbursement Arrangement (ICHRA), you can provide high-quality, tax-advantaged healthcare support—without locking into rigid group plans or overpaying for outdated coverage models.

If you have W-2 employees—even just a few—ICHRA could be a game changer.

What Is an ICHRA?

An ICHRA is a tax-free reimbursement plan that allows employers to pay back employees for their individual health insurance premiums and qualified medical expenses.

No group plan. No carrier lock-in. Just control, clarity, and cost savings.

Here’s how it works:

  • Employees pick their own insurance plans

  • Employers reimburse premiums and expenses tax-free

  • You control the budget—monthly allowances can vary by employee class

  • No employer mandate penalties if structured properly

Who Should Consider an ICHRA?

ICHRA isn’t just for big corporations—it’s ideal for:

  • Business owners with 1+ W-2 employees

  • Companies with a mix of full-time, part-time, or seasonal staff

  • Employers fed up with ballooning group plan premiums

  • Entrepreneurs wanting benefits without bloated administration

It’s especially effective for remote teams, multi-location businesses, and owners who want flexibility without giving up compliance.

Why Business Owners Like You Are Using It?

✅ No Group Health Plan Headaches
✅ Predictable Monthly Costs
✅ Tax-Free for You and Your Team
✅ Full Employee Choice in Coverage
✅ ACA-Compliant when structured properly

In short, ICHRA gives you the perks of a benefit plan, without the red tape

How AIFG Helps

We don’t just sell health insurance. We design strategy.

At AIFG, we structure your ICHRA so it fits your budget, your team, and your long-term goals. We act as the bridge between your CPA, legal team, and any third-party administrators—making sure your plan works for you, not against you.

This isn’t plug-and-play. It’s custom-fit.

Frequently Asked Questions

  • Nope. There’s no minimum. Even if you have just one W-2 employee, you can set up an ICHRA. It doesn’t work for 1099 contractors, but it’s ideal for small teams with employees on payroll.

  • Absolutely. That’s part of the appeal. ICHRA replaces the need for a group health plan. Employees buy their own individual policies, and you reimburse them tax-free—on your terms, not the insurance carrier’s.

  • Most clients use it to cover individual health insurance premiums, but you can also include out-of-pocket expenses like copays, deductibles, and prescriptions—as long as your plan design includes those. You control what’s eligible.

  • Possibly. If your ICHRA is considered “affordable” under IRS rules, employees can’t keep their premium tax credits through the exchange. That’s why we help you run the numbers—before you roll anything out.

  • Yes—as long as the plan is structured correctly. Reimbursements for premiums and eligible medical expenses are tax-deductible for the business and tax-free for the employee. This is one of the rare cases where the IRS actually lets everyone win.

The Tools Behind the Layers

Each TEL strategy has its own role. When layered, they multiply value.

Click Below to Examine each one.

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