An ICHRA gives eligible employees access to an employer-funded allowance for qualifying individual health insurance coverage. The employee enrolls in coverage held in their own name.
Being eligible for an ICHRA does not automatically enroll an employee in health insurance. The employee must:
Complete the applicable enrollment process
Select qualifying coverage
Provide the required information and attestations
Meet the applicable enrollment deadline
Complete any required initial premium payment
An employee can have an available ICHRA allowance without having active health insurance coverage.
Treat enrollment as three separate stages:
Application submitted
Enrollment confirmed
Active policy
A submitted application does not mean coverage is active. The insurance carrier's confirmation is the authoritative record of whether the policy is in force.