Article Date:
November 2019

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9 Insights on the New Individual Coverage HRA for Small Business

Does your business have fewer than 50 employees?


Would you like to help your employees with some of their health insurance expenses?


If you answered yes to both questions, you should consider the new individual coverage HRA (ICHRA) that we introduced to you last month in New Individual Coverage HRA Turns the Clock Back to Pre-ACA Health Care Options.


You will likely find the new ICHRA a superior alternative to the QSEHRA because the ICHRA has far more flexibility, as you will see from the nine insights below.


Insight 1. Application of the Class Size Rule


The class size requirement applies only if you (a) offer a traditional group health plan to at least one other class of employees and (b) offer an ICHRA to at least one class of employees.1


With no group health plan, you face no class size requirement.


Insight 2. Minimum Class Size Requirement, Example2





You have 16 employees.


You cover your four full-time employees with group health coverage.


You offer your 12 part-time employees a $1,000 ICHRA.


Eight part-time employees accept the ICHRA; four employees decline. ... Log in to view full article.

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