ICHRA (Individual Coverage Health Reimbursement Arrangement) is an employer-funded benefit that allows you to reimburse employees—tax-free—for individual health insurance premiums and qualified medical expenses. Employees choose their own plans (as long as they meet ACA standards), creating flexibility for them and cost control for you.
Key Benifits
- Predictable Costs: You set a monthly budget.
- Tax Savings: Contributions are payroll and income tax-free.
- Employee Choice: Team members select plans that suit their needs.
- ACA Compliant: Meets large employer mandates when structured properly.
Employers with 50+ Staff
Meet ACA requirements without the rigidity or cost spikes of traditional group plans.
Higher-Income Teams
If your team earns above subsidy thresholds, ICHRA becomes especially valuable.
Multi-State or Remote Workforces
Standardize benefits across locations while giving employees local plan options.
Employers Seeking Budget Control
Ditch premium surprises—set your spend in advance and avoid minimum participation rules.
How Premier One Supports You
Plan Notices & Setup
We help you deliver all required legal notices and customize your ICHRA structure to match your workforce and budget.
Personalized Enrollment Support
Each employee gets one-on-one help choosing the right plan—via phone or video.
Consolidated Billing
Even with multiple carriers, you receive one invoice. We pay each insurer on your behalf.
Ongoing Administration
We handle mid-year changes, new hires, terminations, ID cards, and more—freeing you from COBRA and participation headaches.
ICHRA vs. Defined Contribution: Which Is Right for You?
| Feature | ICHRA (Tax-Free) | Defined Contribution (Taxable) |
|---|---|---|
| Tax Treatment | Employer dollars are tax-free | Counted as taxable employee income |
| ACA Subsidy Impact | Disqualifies employees from subsidies | Employees may still receive ACA subsidies |
| Best For | Larger or higher-income teams (50+ employees) | Smaller businesses or subsidy-eligible teams |
| ACA Compliance | Meets large employer mandate | Not applicable to small employers under 50 |
| Consolidated Billing | Yes, through Premier One | Yes, through Premier One |
Ready to Simplify Your Benefits?
Premier One can help you leave group plan stress behind. With ICHRA, you get predictable spending and streamlined administration—while giving your team the freedom to choose the coverage that fits their lives.
Why Employers Choose Premier One
We’re a veteran-owned third-party administrator that makes health benefits easy. Our 98% client retention rate and average 32% savings say it all. With Premier One, you’ll gain a partner—not just a processor—who helps you build better benefits from day one.
“Premier One made our ICHRA rollout smooth and stress-free. Our employees felt supported, and we finally had control over our costs.”
— HR Director, Multi-State Engineering Firm
