Employers that offer Individual Coverage Health Reimbursement Accounts (ICHRAs) must track that coverage to report on ACA Form 1095-B/C.
An ICHRA is an arrangement through which an employer contributes a set amount of money on behalf of an employee to a health reimbursement account. The employee uses the money in the account to purchase health insurance coverage. The employee can purchase the health insurance coverage through an individual insurance plan or through the federal health care Marketplace. Funds in an ICHRA are designated to be used only to buy individual health insurance coverage which makes an ICHRA different from a standard medical reimbursement HRA.
Offering an ICHRA is considered employer-provided coverage for health care reform reporting purposes.
If an employer provides health coverage to employees by contributing to an employee’s account and letting them pick their own insurance coverage, the employer may have to report this coverage in ACA filings.