How ICHRA Premium Payments Work

Learn how employer allowances, employee-paid portions, insurance premiums, and Lirvion fees relate to each other.

Sep 7, 2026

The insurance premium is the amount charged by the carrier for the employee's individual health insurance policy. It may include coverage for the employee and enrolled family members.

The employer provides the amount available under the approved ICHRA allowance. When the premium is higher than the allowance, the employee is responsible for the remaining amount.

For example:

  • Monthly premium: $650

  • ICHRA allowance: $500

  • Employee-paid portion: $150

A change to the insurance premium does not automatically change the employer's approved ICHRA allowance. Changes to the allowance structure must be reviewed and approved separately by the employer.

Lirvion subscription fee

Lirvion's subscription fee is a separate administrative charge billed to the employer. It:

  • Is not an insurance premium

  • Does not pay for an employee's insurance policy

  • Is not deducted from an employee's ICHRA allowance

The employer-funded allowance and Lirvion subscription fee are separate.

Related articles