ICHRA

Individual Coverage HRA (ICHRA)

Give employees the freedom to choose their own health plan while you keep costs predictable — with no group participation minimums.

Traditional Group Plans Don't Fit Every Workforce

If your team is spread across multiple states, works remotely, or spans very different life stages, a single group health plan rarely fits everyone well. Group plans also tie your costs to unpredictable renewals and require minimum participation rates that distributed or part-time-heavy workforces struggle to meet. Employers end up paying for a one-size-fits-all plan that leaves many employees underserved.

How Nyala Health Helps

An Individual Coverage Health Reimbursement Arrangement lets you set a fixed monthly allowance by employee class and reimburse workers tax-free for individual coverage they choose themselves. Your costs become predictable and controllable, with no minimum participation requirements, while employees pick plans that actually fit their needs. We evaluate whether an ICHRA is right for you and manage setup, compliance, and administration end to end.

  • Fixed, predictable monthly costs by class
  • Tax-free for both employer and employee
  • No group participation minimums
  • Ideal for distributed and multi-state teams
  • Employees choose their own ACA-compliant plans
  • Full setup, compliance, and administration support

Why Employers Choose an ICHRA

Predictable Costs

Set a fixed allowance by employee class and know your benefits spend in advance — no surprise renewals.

Employee Choice

Workers select individual plans that fit their families, providers, and budgets instead of a single group plan.

Built for Distributed Teams

ICHRAs shine for remote, multi-state, and part-time-heavy workforces that group plans struggle to serve.

ICHRA — Common Questions

What is an ICHRA?

An Individual Coverage Health Reimbursement Arrangement allows employers to reimburse employees tax-free for individual health insurance premiums, giving employees plan choice and employers predictable fixed costs.

How does an ICHRA work for employers?

Employers set a fixed monthly reimbursement amount per employee class. Employees purchase their own ACA-compliant individual coverage and submit for tax-free reimbursement — with no group participation minimums.

Who is an ICHRA best for?

ICHRAs are especially effective for distributed, remote, multi-state, and part-time-heavy workforces, as well as employers who want predictable, controllable benefits costs.

Is an ICHRA tax-advantaged?

Yes. Reimbursements are tax-deductible for the employer and tax-free for the employee, similar to a traditional group plan.

Does Nyala Health handle ICHRA setup and compliance?

Yes. We evaluate whether an ICHRA fits your business and manage the setup, compliance, and ongoing administration from start to finish.

Wondering if an ICHRA fits your team?

Get a free evaluation and we will help you decide if an ICHRA is right for your workforce.