ICHRA for small business

Why ICHRA fits small businesses

Small employers are squeezed by group insurance: high minimum-participation rules, annual premium hikes, and renewal surprises. An ICHRA flips the model. Instead of buying one plan for everyone, you set a budget and let employees buy individual coverage that fits them — and you reimburse it tax-free.

What it costs you

You control the spend entirely. There’s no minimum contribution and no maximum. Many small businesses set an allowance similar to what they’d have paid toward a group plan — but with the certainty of a fixed number that doesn’t jump at renewal.

How to roll out ICHRA at a small company

• Decide your monthly allowance — flat, or varied by employee class and family size.
• Pick a 60-day-out start date so employees have time to enroll.
• Notify employees with the required ICHRA notice (90 days before the plan year is standard).
• Help employees choose individual plans and submit proof of coverage.
• Reimburse tax-free through payroll or an administration platform.

Common small-business questions before switching

The biggest worry is usually employee experience — will my team be able to find good plans on their own? With a broker guiding enrollment, most teams end up with coverage they prefer to a one-size group plan, and the employer gets predictable costs.