Overview

The BASE® Individual Coverage HRA (ICHRA) allows employers the opportunity to increase flexibility and employee choice by designing a reimbursement plan for their employees individually purchased insurance.

The ICHRA will integrate with individual health insurance to provide business owners with a great alternative when it comes to providing health benefits. This type of plan provides a health benefit to better fit the needs of many businesses. Overall the BASE® ICHRA helps to streamline benefit options and cut costs without reducing value when it comes to health benefits for employees.

Benefit to Employer:

No Size Restrictions.
Available to employers of any size.

Employer Satisfaction.
Attract and retain talented employees with an increased benefits package.

Tax Benefit.
All reimbursements are 100% deductible as a business expense.

Controlled Funding Limits.
Employer has the freedom to choose the level of reimbursement.

Savings.
Saving money by not having to provide a traditional health care plan to any or all employees.

Peace of Mind.
Plan administration is handled by BASE®.

Benefit to Employee:

Cost Savings.
Employees now have additional money to help with the rising cost of healthcare.

No Taxes.
All reimbursements are non-taxable.

Convenience.
Easy way to get reimbursed for health care expenses.

Plan Eligibility

This plan provides an option when it comes to paying for out-of-pocket medical costs, including health insurance premiums. Guidelines for qualifying for this type of plan include the following, but be sure to contact BASE® with any questions regarding eligibility.

Guidelines
  • Plan can be designed to reimburse either individual health premiums or non-insured medical expenses, or both
  • The reimbursement amount must be the same for all eligible employees in a class, but may vary based on the number of employee dependents
  • Employees and dependents must be covered by individual health coverage, verified at least once a year, and on each claim request
  • Medicare Parts A, B, and C qualify as individual health coverage in addition to coverage purchased on or off the Marketplace
  • Employers cannot offer a traditional group health insurance plan and the ICHRA to the same class of employees
  • Certain plan designs based on specific employee classes may require minimum participation and eligibility
  • Specific 90 Day Notices are required to be distributed to each participant
  • Employees participating in the ICHRA are FSA eligible, and the ICHRA can also be designed to be HSA compatible

Individual Coverage HRA Savings

The Individual Coverage HRA allows employers to provide employees and their families with tax-preferred funds to pay for qualified premiums and/or non-insured medical expenses, essentially providing another option for financing employee health insurance expenses.

  • All reimbursements are 100% deductible as a business expense for the employer and non-taxable for the employee.
  • The employer has the freedom to choose the level of reimbursement.
  • The employees have additional money to help with the continuous rise in health care.

Frequently Asked Questions

The plan sponsor of the ICHRA will determine what class of employees are eligible, and select from the following permitted classes:

  • Salaried
  • Hourly
  • Full-Time
  • Part-Time

Contact Us

Send us your questions or comments by filling out this form and a BASE® representative will call within one business day, or call (800) 370-9607 to speak with a support specialist during our office hours.

Business Office Hours

  • Monday - Thursday
    8am to 5pm CST
  • Friday
    8am to 12pm CST

All Fields Required