Frequently Asked Questions

My business of over 50 employees is interested in using an ICHRA. How can I meet state health coverage requirements?

If an employer has over 50 employees, the employer is required under the Affordable Care Act (ACA) to provide health insurance to their employees. This means the ICHRA must be considered affordable. Refer to the calculation below.

Affordability calculation:

• Affordable ICHRA Contribution > Lowest Cost Silver Plan - (9.78% * Employee household income)

• An “affordable” ICHRA contribution must be greater than the lowest cost silver plan an employee can purchase minus 9.78% times the employee’s household income.

• While this calculation seems complicated, it’s not. There are several safe harbors to help make it easy.