When selecting a plan, employees should understand the difference between:
The full insurance premium
The monthly ICHRA allowance
The amount they are responsible for paying
For example:
Monthly insurance premium: $650
Monthly ICHRA allowance: $500
Employee-paid portion: $150
The employee is responsible for the portion of the premium that exceeds the available allowance.
A plan with a premium below the allowance does not create a cash payment to the employee for the unused difference. Any unused amount is handled according to the terms of the ICHRA plan.
The treatment of the employee-paid portion may also depend on whether the coverage was purchased through or outside the Exchange.
Silver plans and affordability
Employees may choose a Silver plan, but the applicable employee-only lowest-cost Silver plan premium is also used as a benchmark in affordability calculations for applicable large employers.
This benchmark is not a recommendation, a requirement, or a plan the employee must purchase.