Explaining Individual Coverage Health Reimbursement Arrangements (ICHRAs)

This policy explainer describes what Individual Coverage Health Reimbursement Arrangements (ICHRAs) are and how do they differ from typical employer-sponsored health care plans.

ICHRAs, which represent a new approach for employers in providing comprehensive health coverage, assign more choice and responsibility to employees, who must select and enroll in an individual insurance policy and are responsible for paying its premium. Employers use ICHRAs to reimburse employees for their health care plan costs and can vary the amounts they offer based on age, the type of worker (full or part-time), geographic location, and other factors.

The full explainer and other data on health costs are available on the Peterson-KFF Health System Tracker, an online information hub dedicated to monitoring and assessing the performance of the U.S. health system.