An ICHRA allowance is the employer-funded amount made available to an eligible employee.
The plan documents establish:
How the allowance is determined
When it becomes available
Which family members may be included
What happens to unused amounts
Lirvion administers allowances as monthly amounts, even when the employer evaluates the benefit as an annual budget.
The allowance is separate from the employee's insurance premium. A higher premium does not increase the available allowance, and a lower premium does not turn the difference into cash.
Accurate allowance amounts depend on accurate eligibility, class, age, family, and effective-date information.