If you’re an Ohio business owner frustrated by rising group health insurance premiums, unpredictable renewals, or plans that just don’t fit your team — you’re not alone. A growing number of employers across the state are turning to a benefit called an ICHRA, and it’s changing the way businesses think about health coverage.
WHAT IS AN ICHRA?
ICHRA stands for Individual Coverage Health Reimbursement Arrangement. It’s a federally approved benefit — available since January 2020 — that allows employers to reimburse employees tax-free for the cost of their own individual health insurance plans.
Instead of locking your entire team into a single group plan, you set a monthly reimbursement allowance. Each employee shops for the plan that works for them — their doctors, their family, their budget — and you reimburse them, tax-free, up to your chosen amount. Simple, flexible, and fully compliant.
Key point: With an ICHRA, the employer controls the budget. The employee controls the plan. Everyone wins.
WHY OHIO EMPLOYERS ARE MAKING THE SWITCH
ICHRA VS. TRADITIONAL GROUP HEALTH INSURANCE
Traditional Group Plan:
- Premiums rise unpredictably at renewal
- One plan — take it or leave it
- Minimum participation requirements
- Harder to offer across multiple locations
- Complex carrier relationships to manage
ICHRA:
- You set the budget — it stays fixed
- Employees choose their own plan
- No participation minimums
- Works across cities and counties statewide
- Simple administration, often software-assisted
WHO IS A GOOD FIT FOR ICHRA?
ICHRAs work especially well for Ohio businesses that are:
- Too small to qualify for or afford traditional group coverage (2–50 employees)
- Mid-sized and tired of annual premium surprises (50–200 employees)
- Managing part-time, seasonal, or remote workers across different regions
- Ready to offer meaningful benefits without the administrative burden of a full group plan
Already familiar with HRAs? Ohio Health Benefits can help. As an experienced HRA/HSA Third Party Administrator, Ohio Health Benefits already has the infrastructure and know-how to help you set up and manage an ICHRA properly — without the guesswork. And as always, our services come at no charge to you.
COMMON QUESTIONS
Can I offer different reimbursement amounts to different employees?
Yes — you can vary allowances by employee class (full-time vs. part-time, salaried vs. hourly, geographic location, etc.) as long as you follow IRS rules for consistency within each class.
What if an employee already has coverage through a spouse?
Employees aren’t required to participate. Those who opt out simply don’t use the reimbursement — you pay nothing for them that month.
Is ICHRA ACA-compliant?
Yes. ICHRA was created through federal rule-making and is fully ACA-compliant. Employers with 50 or more employees can use it to satisfy ACA employer mandate requirements.
Do I need a broker or administrator to set one up?
While it’s technically possible to set one up on your own, working with an experienced local broker ensures you structure it correctly, stay compliant, and avoid costly mistakes — at no cost to you.
Curious if ICHRA is right for your business?
Ohio Health Benefits is a locally-owned, independent broker with offices in Tallmadge, Hiram, and Canton — serving all of Ohio. Our advisors will walk you through your options, run the numbers, and help you find the right fit. No pressure. No cost. Just straightforward answers from people who know Ohio.
Get to know the local advisors who have been helping Ohio businesses navigate health benefits for years. Call us at 330-633-7713 or reach out online to schedule your consultation.
