ICHRA

An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a flexible, employer-funded program that gives employees tax-free dollars to help cover the cost of individual health insurance, Medicare premiums, and other qualified medical expenses. Employees can choose the individual coverage that best fits their needs, while the program itself is designed to feel familiar—much like traditional group insurance. They can also make pre-tax payroll contributions to further boost their healthcare spending power. With an ICHRA, employer contributions are tax-deductible, while employees benefit from potential tax savings and increased take-home pay. Designed to offer both flexibility and financial advantage, ICHRAs empower employees to use funds for a wide range of eligible healthcare expenses, all while giving employers more control over their benefits strategy.

What is an ICHRA?

See how MEDSURETY makes ICHRA easier for employers and employees through expert guidance, streamlined processes, and ongoing support.

For Employees: Personalized Health Coverage Made Simple

With an ICHRA, you can choose the individual health insurance plan that fits your needs while your employer helps cover the cost. Enjoy tax-free employer contributions and payroll deductions, mobile-friendly account access, and simple premium payments—all designed to give you flexibility and control over your healthcare.

Choose Your Own Coverage

Select the individual health plan that works for you and your family—giving you flexibility and freedom to tailor coverage to your needs.

Pay Premiums Tax-Free

Your ICHRA dollars are used to cover your premium payments tax-free, maximizing your savings.

Use with Individual Policies

This benefit works with individual health insurance plans, providing more choice than traditional group plans for you and your family.

Mobile-Friendly Account Access

Manage your ICHRA on the go—monitor employer contributions and payroll deductions, track premium payments, and access account details from your smartphone or tablet.

You Own Your Policy

Your health insurance is yours to keep—choose the plan that fits your needs, and take it with you even if you change jobs or life stages.

Simple Premium Payments

MEDSURETY pays your premiums directly to your insurance carrier, eliminating paperwork and making the process hassle-free.

$150M+

Assets Managed

800,000/year

Claims Processed

300,000+

Members

3,000+

Organizations

For Employers: Flexible, Cost-Controlled Benefits

ICHRA allows employers to offer health benefits in a modern, budget-friendly way. Control your contribution amounts, simplify administration, and enhance your benefits offering without the constraints of group plan renewals.

Control Your Benefit Budget

Set defined contribution amounts based on your organizations annual budget, giving you predictable costs while providing meaningful health benefits.

Step Away From Group Renewals

Regain control by reviewing annual increases in the individual market and determining your renewal budget based on your organization’s financial performance.

Simplify Benefit Administration

Our platform assists employees in finding coverage that best meets their needs, managing their individual enrollment, registering their payment method, reconciling payments, and providing compliance assistance.

Maintain Pre-Tax Status

ICHRA contributions remain fully tax-advantaged, allowing both your organization and employees to save on taxes.

Enhance Benefits Competitiveness

Offer a modern, flexible healthcare solution that appeals to current and prospective employees, strengthening your benefits package.

Streamlined Implementation Process

From setup to employee education, our team ensures a smooth onboarding experience with minimal disruption to your organization.

Here’s How Our ICHRA Administration Works:

Customize Your Plan Design – Decide who’s eligible, how much to contribute, and what expenses your ICHRA will cover.

Rely on Expert Setup and Renewal Support – MEDSURETY handles model notices, plan documents, and annual renewals for you.

Simplify Payments and Reimbursements – Premiums are paid directly to carriers via ACH, and eligible claims are reimbursed quickly and securely.

Empower Employees with One-on-One Guidance – Our licensed advisors help employees find and enroll in the right individual health insurance plan.

Stay Compliant and Organized – We manage employer and employee contributions, payroll deductions, and verify use of funds for eligible coverage.

Access Educational Tools and Ongoing Support – Employers and employees gain access to our Online Tool Kit with communication materials, including educational videos and FAQs for guidance.

Eligible expenses can include:

Individual health insurance premiums, Medicare Parts A and B, Part C, Medicare Part D, Medicare supplements, dental and vision coverage, prescription drugs, copays, deductibles, and other qualified 213(d) medical expenses—depending on your plan design.

Why Employers Choose MEDSURETY for ICHRA

For Employees:

Access to a personalized shopping site to compare coverage options

One-on-one guidance to select the right plan, verify networks, and ensure prescriptions are covered

Enrollment and payment setup using a MEDSURETY ICHRA account number

Ongoing account management and dedicated customer service

For Employers:

A dedicated Account Manager to support your organization

Monthly reporting and payment reconciliation to ensure accurate enrollment

COBRA-compliant administration and IRS-required reporting (Forms 1094/1095, PCORI fee filing)

Creation and compliance support for Section 125 Cafeteria Plan Documents

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Frequently Asked Questions

Get the clarity you need. Find straightforward answers to the most frequently asked questions about ICHRA.

Setting up an ICHRA starts with designing your plan—deciding who’s eligible, how much you’ll contribute, and which expenses are reimbursable. From there, MEDSURETY makes implementation seamless by handling plan documents, employee notices, and setup in our online platform. We assist with employee enrollment, facilitate ACH premium payments directly to carriers, and manage ongoing reimbursements. Our team also provides educational materials, compliance support, and personalized guidance to ensure both employers and employees experience a smooth transition to individual coverage.

An ICHRA through MEDSURETY allows employees to choose the individual health insurance plan that best fits their personal needs and budget instead of being limited to a single group plan. Our licensed advisors provide one-on-one support to help employees compare options and enroll confidently. Plus, employees can use ICHRA funds to cover premiums and other eligible medical expenses, giving them greater control over their healthcare spending.

Employees receive step-by-step guidance throughout the enrollment and renewal process. MEDSURETY provides clear communication materials, educational resources, and access to our Online Tool Kit to help employees understand their ICHRA benefits. Our licensed advisors provide one-on-one support to assist employees with selecting, enrolling, and setting up payment for their individual health insurance coverage—ensuring every participant feels informed and confident in their choices.

MEDSURETY combines expert guidance, advanced technology, and personalized service to make ICHRA administration simple and reliable. We handle every step—from plan design and setup to employee enrollment, premium payments, and ongoing reimbursements—reconciling employer funding against premium payments to ensure all payments are made on time—so you can focus on your business. Our dedicated account managers provide responsive support, while our online platform streamlines communication, reporting, and compliance. With MEDSURETY, you gain a trusted partner committed to delivering flexibility for your employees and efficiency for your organization.

MEDSURETY manages the entire renewal process to make it simple and stress-free. Our team provides detailed video guidance and access to our customer service team to assist with re-enrolling in their ICHRA plan using their current insurance. For those who want to explore alternative options, we guide employees through re-enrollment, helping them evaluate coverage options and make informed decisions for the new plan year. With proactive communication, clear timelines, and hands-on support, MEDSURETY ensures a seamless renewal experience for everyone.

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