One of the most exciting things that sets the individual coverage health reimbursement arrangement (ICHRA) apart from other HRAs is the flexibility to designate different employee classes.
The use of employee classes allows employers to differentiate or categorize employees into groups to make it easier to customize benefits. Classes had been tightly regulated in HRAs ever since the stand-alone HRA was eliminated in 2013.
However, when the ICHRA became available in 2020, the employee classes feature was restored. The ICHRA comes with 11 different employee classes employers can leverage to structure benefit eligibility and allowance amounts. When used well, these classes help businesses both big and small effectively use their health benefit to hire and keep valuable employees.
In this post, we’ll explain what the 11 employee classes are as well as how to use them to define ICHRA eligibility and allowance amounts so they match your goals for health benefits.
See how today’s employers are customizing their ICHRA benefit in our infographic