Q.- We contribute to an Individual Coverage Health Reimbursement Account for our employees to purchase their own health coverage. Do we have to offer COBRA for the benefit?
A.- Yes. An ICHRA is a type of Health Reimbursement Account plan. The employer makes contributions to the HRA and the individual uses the money in the HRA to buy their own individual medical plan (not a medical plan provided by an employer) or Medicare. Money in the HRA may be used for qualifying medical expenses. To have an ICHRA, the employee must have either individual medical coverage or Medicare coverage. HRAs are subject to COBRA and therefore an ICHRA is subject to COBRA.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
