How Open Enrollment Works with ICHRA

ICHRA Open Enrollment: The Employer Experience

Step 1

Set your employee health budget. Decide how much to contribute per employee class (full-time, part-time, by location, by age band). Thatch models the cost so you know your total spend before enrollment opens.

Step 2

Send the required 90-day notice. ICHRA regulations require employers to notify eligible employees at least 90 days before the plan year starts. Thatch generates and sends this notice automatically.

Step 3

Open enrollment. Employees receive personalized invitations from Thatch. They see available plans with real costs (after employer contribution). They can compare, ask questions via licensed advisors, and enroll — all within the Thatch platform.

Step 4

Thatch handles the rest. Carrier enrollment submissions, premium payments, payroll deduction setup, compliance reporting. No spreadsheets. No manual carrier calls.

ICHRA Open Enrollment: The Employee Experience

Step 1

Receive your enrollment invitation. Your employer has set an employee health budget for you. Thatch shows you exactly how much your employer contributes.

Step 2

Browse plans. See every available plan in your area — on-exchange and off-exchange. Thatch shows you the real cost after your employer's contribution and any ACA subsidies you qualify for.

Step 3

Get help if you need it. Thatch's licensed advisors can answer questions about plan differences, provider networks, prescription coverage, and costs. 85% of employees complete enrollment without needing advisor help.

Step 4

Enroll. Pick your plan and confirm. Thatch submits your enrollment to the carrier and sets up automatic premium payments. Your employer's contribution is applied automatically.

Step 5

You're covered. Your insurance card arrives directly from the carrier. Thatch handles premium payments going forward — no risk of lapsed coverage from missed payments.

Why Employers Are Switching to ICHRA for Open Enrollment

1. No more carrier negotiations. With ICHRA, there's no group plan to renew. You set a budget. Employees choose their own plans. Done.

2. No more enrollment forms. Thatch's platform handles enrollment digitally. No paper, no PDF forms, no chasing signatures.

3. No more one-size-fits-all. A 25-year-old in Austin and a 55-year-old in Manhattan don't need the same plan. ICHRA lets each employee choose what's best for them.

4. Predictable costs. You set the budget. If health insurance premiums go up, your cost stays the same — the employee adjusts their plan selection.

5. Year-round flexibility. New hires don't have to wait for open enrollment. ICHRA can be offered with any start date, and Thatch handles mid-year enrollments seamlessly.

ICHRA Open Enrollment FAQ

Do ICHRA employees have to enroll during open enrollment?

For marketplace plans, yes — ICHRA employees use the same ACA open enrollment window (Nov 1 – Jan 15). However, being newly offered ICHRA qualifies employees for a Special Enrollment Period, so mid-year starts are possible. Off-exchange plans can be enrolled in at any time.

Can my employer switch to ICHRA during open enrollment?

Yes. Open enrollment is the most common time for employers to transition from group plans to ICHRA. Thatch handles the transition, including employee communication, plan selection support, and compliance.

What if an employee doesn't enroll during open enrollment?

Employees can opt out of ICHRA and waive the employer contribution. They can enroll during the next open enrollment period or if they experience a qualifying life event.

Does ICHRA affect my ACA subsidies?

If your employer's ICHRA offer is considered 'affordable' under ACA rules, you are not eligible for marketplace subsidies. If the offer is 'unaffordable,' you can decline ICHRA and keep your subsidies. Thatch calculates affordability automatically and advises employees on the best path.