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Individual coverage health reimbursement arrangements (ICHRAs)

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This innovative solution provides an expansion of HRA health benefits for employees. It represents a more modern model of health insurance.

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New to an ICHRA? Learn the basics.

The idea behind ICHRAs is based on reimbursing employees for insurance rather than buying it for them. It allows employers to structure reimbursements based on employee class, family size or employee age, or to provide everyone the same amount. An ICHRA can cover insurance premiums and out-of-pocket health care expenses if the employer chooses to offer that via their ICHRA plan. 

  • Features include health care expenses if the employer chooses to offer that via their ICHRA plan. 
  • Employers design their plan, including defining who is eligible and establishing reimbursement limits.
  • Employees purchase their own qualified individual medical plan.
  • Employees submit claims for reimbursement.
  • Employers reimburse employees for valid claims.
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Claims and reimbursements

Employees can pay for eligible health care expenses with a personal credit card, check or cash. Then they submit a claim by email, mail or fax. Along with the claim, they send a receipt that shows: 

  • The name of the doctor or other service provider, pharmacy or store
  • The date of service or purchase
  • A description of the service(s) or item(s) purchased
  • The amount charged (or what the employee is responsible for paying)

ICHRA claim form

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Frequently asked questions

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  • An individual coverage health reimbursement arrangement (ICHRA) is an expansion of health reimbursement account/arrangement (HRA) services. It is offered through your employer. You will need to check with your benefits department or human resource representative to determine if you are eligible for this plan.

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  • Yes, it is a type of HRA. It provides you with pre-tax contributions to use toward IRS-eligible expenses including medical, prescription, dental, vision and qualified over-the-counter expenses not paid by your group benefit plan.

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  • An ICHRA is a benefit offered by an employer. You will need to check with your benefits department or human resource representative to determine if you are eligible for this plan. 

    OR

  • Examples include doctor’s visits and copays, prescriptions, dental treatment, eyeglasses and lenses, and more. Use our qualified medical expense tool to see qualified medical, dental and vision expenses. The expenses for ICHRA are the same as the expenses for an FSA.

    You can search for eligible expenses in IRS Publication 502.

    Note: Employers can choose what they want their ICHRA to reimburse including:

    • Insurance premiums only
    • Insurance premiums + qualified medical expenses
    • Qualified medical expenses only

    Make sure you check your plan information as to what exactly is available for reimbursement under your ICHRA benefit. 

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Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Discretionary advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment Securities, Member FINRA/SIPC. For details and disclosures visit betterment.com. The Schwab Health Savings Brokerage Account is offered to certain account holders through Charles Schwab & Co., Inc., Member FINRA/SIPC. For details and disclosures, visit schwab.com. Brokerage services are offered to certain accountholders through TD Ameritrade, Inc., Member FDIC/SIPC and a subsidiary of The Charles Schwab Corporation. For details and disclosures, visit tdameritrade.com.

Orders are accepted to effect transactions in securities only as an accommodation to HSA owners. Optum Financial and its subsidiaries are not broker-dealer or registered investment advisors and do not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit securities transactions.

Health savings accounts (HSAs) are individual accounts offered through Optum Bank®, Member FDIC, or ConnectYourCare, LLC, an IRS-Designated Non-Bank Custodian of HSAs, each a subsidiary of Optum Financial, Inc. Neither Optum Financial, Inc. nor ConnectYourCare, LLC is a bank or an FDIC insured institution. HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account.

Flexible spending accounts (FSAs), dependent care assistance programs (DCAPs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Tuition Assistance Plans, Adoption Assistance Plans, Surrogacy Assistance Plans, Wellness Benefits, and Lifestyle Accounts (collectively, “Employer-Sponsored Plans”) are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC (collectively, "Optum Financial") and are subject to eligibility and restrictions. Employer-Sponsored Plans are not individually owned and amounts available under the Employer-Sponsored Plan are not FDIC insured. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change. Please contact a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions.

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The promotional code OPTFSA7, OPTHSA5 and OPTHRA7 cannot be applied to previously placed orders, and cannot be combined with other promotional codes. Additionally, the code cannot be used for prescription drugs or virtual care visits. Promotional codes are not transferable or redeemable for cash or credit. To apply a promotional code you must enter it prior to completing the order.

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The Optum Store is an affiliate of the UnitedHealth Group family of companies.

Your employer sponsored plan may exclude reimbursement for certain categories of items. Check your plan document and summary plan description or contact your benefits department for specific coverage details. 

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