ICHRA Notices: What Employers Need to Know

POV: You’re an employer about to kick off Open Enrollment for your new Individual Coverage Health Reimbursement Arrangement (ICHRA) Plan.

Here’s what you need to know. 

To kick off the Open Enrollment process, Venteur sends employees an official “ICHRA Notice.” They’ll receive this in the Document Center within their Venteur account.

What is the ICHRA Notice?

The ICHRA Notice is a document developed by the U.S. Department of Health and Human Services (HHS), the U.S. Department of Labor (DOL), and the Internal Revenue Service (IRS). It informs employees that their employer has offered them ICHRA and explains critical details about their ICHRA plan. It also alerts them to the possibility that they may qualify for Premium Tax Credits (aka “Obamacare subsidies”) if the ICHRA does not meet the ACA Affordability Minimum Requirements. 

Note: Venteur does not typically support “unaffordable” ICHRA plans, meaning employees receiving this notice from us are generally ineligible for subsidies. 

What Should Employees Do with the ICHRA Notice?

During the Annual Enrollment period, employees should read the notice but typically don’t need to take any other action. The notice is simply for your employees’ records.

Outside of the Annual Open Enrollment period, the ICHRA Notice is used to kick off a Special Enrollment Period. Insurance carriers periodically ask employees to submit the ICHRA Notice as “proof” that they can enroll in a health insurance plan outside the November 1 to December 15th Annual Enrollment Period. Venteur typically submits ICHRA Notices on behalf of employees, but occasionally, an insurance carrier will reach out directly to an employee for this documentation. It is essential to watch out for these messages and reply promptly; otherwise, the insurance carrier may cancel your coverage. 

Need a Copy of the ICHRA Notice?

The "Model ICHRA Notice" template is available for download here. Venteur customers can access their company-specific ICHRA Notice via the Document Center within their Venteur account.

As always, our team at Venteur is here to help. Please don't hesitate to reach out with questions!