Thatch + Church Benefits Board

Yes, you can offer both, but not to the same class of employees. For example, full-time employees could be offered a traditional health plan, while part-time employees could be offered an ICHRA. This allows you to tailor benefits based on employee needs and work status.

Employers have the flexibility to set eligibility criteria for an ICHRA. It can be offered to full-time, part-time, and temporary workers, as well as certain classes of employees as defined by federal rules. Employers must offer an ICHRA on the same terms to all employees within a class, with certain variations permitted for age and number of dependents. This flexibility allows businesses to meet the needs of various employee groups.

Employers must meet minimum participation requirements for group plans, which vary by state and insurance carrier. On the other hand, an ICHRA has no minimum participation requirements, making it easier for employers with a fluctuating or diverse workforce to implement.

Both employers and employees generally enjoy tax advantages with an ICHRA. Employers can deduct their contributions, while reimbursements for qualified medical expenses are tax-free for employees. This makes an ICHRA a tax-efficient way to offer healthcare benefits.

With an ICHRA, employees can choose a health insurance plan from the individual marketplace that best fits their personal needs and budget. This allows employees to select coverage tailored to their circumstances while employers can maintain predictable, fixed costs without worrying about fluctuating healthcare premiums.