An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a company-funded health benefit that allows employers to reimburse employees for some or all of their health insurance premiums and qualified medical expenses tax-free. They are more flexible than other health reimbursement arrangements (HRAs) and can be beneficial for both employers and employees. Employees can choose their own health plan and receive reimbursements on their paycheck. They can also upload receipts for medical expenses to get reimbursed. If an employer doesn't want to assume the risk or cost associated with a high medical claims, offering an ICHRA is a great alternative.

Small employers (less than 50 FTE's)that offer an ICHRA plan are required to submit the 1095-B and 1095-C to the IRS each.

Applicable Large Employers, or ALE's- organizations with 50 or more FTEs, must meet the ACA's employer mandate to provide employees with healthcare coverage. If an ALE offers an ICHRA plan, they must demonstrate that the amount they’re reimbursing employees for is enough to make individual health coverage affordable. They will report this information on the 1094-C and 1095-C.

On the 1095-C form, an ICHRA plan varies in the fact that the employee's age (as of January 1 of the reporting year) and zip code (used to determine affordability) must be reported. Additionally, box 14 codes different from standard fully insured or self insured medical plans.

Does ACA Track support reporting of an ICHRA plan?

Effective August 1, 2024, for ALE's only, ACA Track can report an ICHRA plan on a the 1094-C and 1095-C.

For ACA Track to report my ICHRA plan, what is needed?

 Employers can submit their information in the ICHRA Data Template. It requires that the employer have a system that can generate the month by month codes for an ICHRA plan.

NOTE: IRS requirements indicate that the employer must report all employees and dependents that were enrolled on the plan, regardless of job status (full time or part time).

What is the cost for ICHRA reporting?

Please visit the ACA Track website for pricing information or reach out to accounts@acatrack.net for a quote for services.

Is a contract addendum required for ICHRA reporting?

If you already have a contract with ACA Track, you'll need a new contract for this specific service level.

Have additional questions? Please reach out to your designated ACA Reporting Specialist.