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Individual Coverage HRA (ICHRA)

Offer employees a more affordable and personal health insurance option with a flexible ICHRA from WEX.

Reduce your healthcare costs, not your flexibility

Save on premiums

By funding the ICHRA with tax-free contributions, you can help lower premiums for your employees.

Improve forecasting

Easily forecast your annual healthcare costs by funding ICHRAs with a fixed amount.

Customize your ICHRA

By determining contribution amounts, employee class eligibility, eligible expenses, and more, you can create a custom ICHRA offering.

Tailor healthcare support based on your needs

  • Employers have the ability to control costs and risks. Rather than attempting to choose a one-size-fits-all plan, managing renewals and participation rates, and being subject to unexpected premium increases, companies can simply set their monthly allowances and then get back to running their businesses.
  • Unlike traditional group health insurance, there are no minimum participation requirements. Companies have full control over the class reimbursement amounts they set and can even change those amounts during the plan year. Beyond employee class, companies can tailor the reimbursements based on employees’ ages and family size.
  • Companies may launch an ICHRA plan on any date. Employees must be notified who will be offered an ICHRA 90 days prior to the start of the plan. Offering these plans will trigger an open enrollment period when employees will be eligible to purchase individual plans.

ICHRAs reimburse employees at a set level for part or all of an individual health plan

  • These plans are tax-advantaged and exempt from payroll taxes. ICHRAs are available to companies of all sizes.

Step 1

Employers define which employees are eligible and establish reimbursement limits for each class of employee covered.

Step 2

Employees purchase the individual plans they want and then submit claims for reimbursement.

Step 3

Employers reimburse valid claims.

Benefits solutions for your specific needs

Benefits administration

Outsource all of your benefits administration needs to WEX and access an end-to-end solution to provide great employee benefits.

Brokers and consultants

Help your clients quickly and easily deploy benefits cards, an array of benefits accounts, and more.

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