ICHRA

Usually not at the same time. If your ICHRA is considered affordable, you must waive the ACA premium tax credit to use the ICHRA. If the ICHRA is unaffordable, you can decline it and take the subsidy instead. Because you generally cannot use both, compare which one leaves you paying less.

Your employer sets a monthly allowance. You buy an individual plan and submit proof, and the employer reimburses you tax-free up to that amount. If your plan costs more than the allowance, you pay the difference, often pre-tax through payroll. If it costs less, you usually cannot keep the leftover.

No. An ICHRA is a specific type of HRA: it is employer-funded, reimburses your individual insurance premiums and sometimes other medical costs, and you generally do not keep unused funds. An HSA is a savings account you own, used with a high-deductible plan, and the money stays yours to keep and invest.

An ICHRA (Individual Coverage Health Reimbursement Arrangement) is a way for an employer to give you tax-free money to buy your own individual health insurance, instead of offering a traditional group plan. You pick a plan on the marketplace or off-exchange, pay for it, and your employer reimburses you up to your monthly allowance.