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Now health benefits take care of business
Employer group plan benefits don’t work the way most teams work today. ICHRA changes that. Employers set a fixed monthly allowance, and their team picks a health plan that actually fits their lives.
Why choose ICHRA?
A better way to offer benefits
How it works
Boost your benefits strategy with ICHRA
Whether you’re an employer looking for predictable costs, an employee picking a plan that suits your needs, or a broker ready to build something big, ICHRA’s the move.
Employers set a budget
Employers set monthly tax-free money to deposit in employee health accounts. No extra payroll taxes for them, and no income tax for the business.
The difference
A new type of Health Reimbursement Arrangement (HRA)
ICHRA allows businesses of any size to provide tax-free reimbursements to employees for health insurance premiums and qualified medical expenses.
Traditional plans
- CostsUnpredictable hikes hit the bottom line.
- SavingsNone! Yearly rate increases of about 20%.
- PlansThree rigid plan options for employees.
- CoveragePart time or seasonal workers often get left out.
- AdminSlow and complicated setups make compliance exhausting.
ICHRA 101
Benefits That Work As Hard As You
What if benefits worked as hard as you? Meet ICHRA, a new approach to health care.
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Frequently asked questions
Get the facts, fast
Get quick answers to the questions people ask most.
Traditional group plans subject your bottom line to volatile, double-digit rate hikes at every annual renewal. With an ICHRA, you completely step off that renewal treadmill. By defining a fixed monthly contribution rather than buying a specific plan, you decide if, when, and by how much your healthcare budget increases.
Yes. You can divide your team into clear legal "classes" (like full-time, part-time, seasonal, or by geographic location). While everyone within a specific class must get the same allowance, you can vary the stipend amounts between classes to match your hiring strategy.
No need to write individual checks or manage complex carrier billing histories. Oscar partners with top-rated third-party platform administrators who handle the operational heavy lifting. Typically, employees buy their plan directly. Then the platform automatically syncs with your payroll to reimburse them with tax-free dollars behind the scenes.
It can be a great fit for both, just for different reasons. For small businesses (under 50 employees), it eliminates the stress of minimum participation rules. It also cuts out the medical underwriting that often blocks small shops from offering coverage at all. For larger companies (50+), it offers a highly predictable, tax-free alternative to volatile traditional group plans. That way, you can cap your healthcare liabilities down to the penny.
It makes compliance surprisingly simple. An ICHRA satisfies the mandate perfectly as long as your monthly tax-free stipend meets the ACA's "affordability" rules and is offered fairly across your employee classes. Put simply, you completely avoid costly penalties without the headache of managing a volatile group plan.
While it’s perfect for health insurance premium payments, an ICHRA can also be used to buy dental, vision, and other supplemental coverage. Depending on how you structure your plan, employees can even put those tax-free dollars towards everyday medical expenses like copays, prescriptions, and deductibles.
Less than 50 people on your team?
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Footnotes
Oscar Medical coverage is underwritten by Oscar Insurance Company and its affiliates. Administrative Services for all plans provided by Oscar Management Corporation. All insurance policies and group benefit plans contain exclusions and limitations. For availability, costs, and complete details of coverage, contact Oscar at (855) 672-2788.