Individual Coverage Health Reimbursement Arrangement (ICHRA) is a new type of health reimbursement arrangement (HRA) in which employers of any size can reimburse their employees for the cost of health insurance employees purchase on their own.

ICHRAs were created under regulations issued by the Trump administration in 2019 and became available as of 2020. ICHRAs represent a departure from previous ACA implementation rules that forbid employers from reimbursing employees for individual market premiums.

SLICE, our ICHRA program, empowers employers to offer flexible and affordable health and retirement benefits to their employees, while maintaining control over their costs.

Some benefits of SLICE for employer include:

• Affordability: SLICE is often more affordable than traditional group medical insurance because employers have more control over their contribution to premium to help their employees cover their health costs, and they can also match a portion of their employees’ retirement plan contributions.
• Reduced Administration: SLICE takes care of the administrative burden of managing benefits plans, so employers can focus on other business priorities.
• Compliance Assistance: SLICE helps employers comply with all applicable health insurance and fiduciary laws and regulations.
• Increased Flexibility: SLICE gives employers more flexibility to choose, eligibility requirements, and contribution levels. Employees also have more flexibility to choose the benefits that best meet their needs and budget.
• Competitive Edge: SLICE can help employers attract and retain top talent by offering a more competitive benefits package.

SLICE is a good fit for all type of employers, from small businesses to large enterprise. However, it is particularly well-suited for:

• Associations with employers who have not purchased group insurance.
• Associations with employers of 25-50 employees
• Associations with employers of 100+ employees

• To the employer, the cost is significantly less than the average annual employer contribution in a traditional group medical plan. In this program, an employer is responsible for a $70 per employee per month (PEPM) administrative fee, and a recommended PEPM contribution of $300 toward single coverage. The annual cost per employee for this scenario is $4,440, compared to the average contribution in the US, which was $5,954 in 2022 according to the Kaiser Family Foundation Survey.
• To the employee, it’s dependent on their own demographic and need in lieu of relying on the demographic, risk and needs of a full group. The cost will vary based on those components, and the employers contribution to the Health Reimbursement Account will offset the employee’s monthly expense. The employee has full control on the type of plan they choose vs. an employer having to build a master plan design.