How to Manage Employee Changes That Affect Your ICHRA

Learn what to review when an employee is hired, changes employment status, moves location, begins leave, or leaves the company.

Sep 7, 2026

Employee changes may affect ICHRA eligibility, employee class, monthly allowance, affordability, or benefit dates.

New hires

Before adding an eligible employee to the ICHRA administration process, confirm:

  • Employment start date

  • Eligibility date

  • Employee class

  • Work location

  • Monthly allowance

  • Applicable waiting period

An employee's hire date and ICHRA effective date may be different.

Other employee changes

Review the ICHRA when an employee changes employment status, work location, leave status, or employee class.

Terminations

When employment ends, confirm:

  • Last day of employment

  • Applicable ICHRA termination date

  • Whether a final monthly amount remains available

  • Whether continuation coverage requirements may apply

  • Whether a payroll deduction must be stopped

Removing an employee from payroll does not automatically end their ICHRA participation or individual insurance policy.

For changes during a month, see Handle Mid-Month Changes.