The questions employers and brokers ask most — without the jargon.
What exactly is an ICHRA? +
An Individual Coverage Health Reimbursement Arrangement lets an employer reimburse employees, tax-free, for individual health insurance they buy themselves — instead of buying one group plan for everyone. You set a fixed monthly allowance; employees choose the plan that fits their family and submit for reimbursement. It's been available to employers of any size since 2020.
How much can we actually save? +
Most employers see costs drop 20–30% versus a comparable group plan, primarily because you control the allowance rather than absorbing whatever the carrier sets at renewal. With family group premiums averaging $26,993 in 2025 and rising 6% a year, capping your spend is where the savings come from. Use the savings calculator for an estimate based on your numbers.
What does "ICHRA affordability" mean for 2026? +
For applicable large employers, an ICHRA must be "affordable" to satisfy the ACA employer mandate. For plan year 2026, the threshold is 9.96% of household income (up from 9.02% in 2025) — meaning an employee's cost for the lowest-cost silver plan, after your allowance, can't exceed 9.96% of income. The IRS provides three safe harbors (Federal Poverty Line, Rate-of-Pay, and W-2). Choice runs this testing for you.
Is there a minimum or maximum contribution? +
There's no IRS cap on what you can contribute — you set the dollar amount, and you can vary it by employee class (full-time, part-time, salaried, hourly, location, age, and more). You can be as generous or as conservative as your budget allows.
How is Direct Primary Care different from insurance? +
DPC is a membership for primary care — unlimited visits, longer appointments, and direct access to a physician, with no per-visit copays. It isn't insurance; it pairs with an insurance plan to cover the everyday care people use most. Under the law enacted in 2025, a DPC membership up to $150/month (single) can pair with an HSA-eligible plan. Choice embeds DPC into every offering. Learn more on the ICHRA + DPC page.
Who handles compliance and administration? +
We do. Choice manages plan documents, enrollment, monthly tax-free reimbursements, affordability testing, and ACA / ERISA / HIPAA reporting. You set the budget; we run the back office.
Can employees keep their own doctors? +
Yes — that's a core advantage. Because employees choose their own plan on the individual market, they can select coverage that includes the doctors and hospitals they already use, rather than being limited to a single employer-chosen network.
How long does it take to set up? +
Most groups can be up and running in a matter of weeks, depending on size and renewal timing. We handle plan design, documentation, and employee onboarding. The best time to start is ahead of your current plan's renewal — reach out and we'll map the timeline.