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For employees

Your employer offers an ICHRA. Here's what it means for you.

Instead of one company plan, you get a monthly amount toward health insurance you choose yourself. It may also be called a CHOICE Arrangement — same thing, new name.
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Last reviewed October 2026

What you're getting

Your employer has set a monthly allowance for you. You pick an individual health plan that fits you — your doctors, your budget, your family — and the allowance pays for it, up to that amount. The reimbursement generally isn't taxed.

  • If your plan costs less than the allowance, you're covered for what it costs. The rest isn't paid to you as cash.
  • If it costs more, you pay the difference — and if you bought the plan outside the Marketplace, you can usually pay it with pre-tax payroll deductions.

What to do, in order

  1. Read the notice from your employer. It tells you your allowance, when it starts, and how it affects Marketplace savings. You'll need it if you apply on HealthCare.gov.
  2. Decide whether to use it. Most people will. A few — usually with lower household incomes — may be better off opting out for a Marketplace tax credit. That's only possible if the offer isn't considered affordable for you (see below).
  3. Choose a plan. Being offered an ICHRA opens a special enrollment period, so you don't have to wait for open enrollment. Generally you have 60 days, and the plan needs to be in place by the day your allowance starts.
  4. Confirm your coverage. You'll be asked to confirm you have qualifying individual coverage before reimbursements start.
  5. Get reimbursed each month, up to your allowance.

Choosing a plan

A few things matter more than the price on the first screen:

  • Your doctors and prescriptions. Check they're in the plan's network before you pick it.
  • Monthly price vs. deductible. Bronze plans cost less each month but more when you use care; gold plans the reverse; silver sits between.
  • What you'd actually pay. Your share is the premium minus your allowance. In the Rikor portal, every plan shows that number directly.

What counts as qualifying coverage: a Marketplace plan, an individual plan bought directly from an insurer, or Medicare Parts A and B or Part C. Short-term plans and dental- or vision-only plans don't count.

Marketplace subsidies and your ICHRA

Your ICHRA offer is affordable if the cheapest silver plan available to you, for just yourself, minus your allowance, costs less than a set share of your household income — 9.96% for plan years starting in 2026, and 10.22% for 2027.

  • If it's affordable: you can't get a premium tax credit on the Marketplace, even if you don't use the ICHRA.
  • If it isn't: you choose — the ICHRA or the tax credit, not both. To take the tax credit, you opt out of the ICHRA.

If you leave your job

Your allowance ends, but your health plan doesn't. It's your policy, so you can usually keep it by paying the premium yourself. Leaving a job can also open a special enrollment period if you'd rather switch.

Enrolled through Rikor? You're not on your own.

If your employer uses Rikor, these are included with your benefit at no cost to you:

  • Talk to a real person about your plan

  • Find a doctor who takes your plan

  • Get an appointment booked

  • Understand what your insurer sent you

  • Fix a claim that went wrong

  • Challenge a bill that looks wrong

  • Get a replacement ID card

  • Carry it in your pocket

Sign in to your benefits See everything that's included

Questions employees ask

Do I have to accept my employer’s ICHRA?

No. You can opt out. Whether opting out makes sense depends on whether the offer counts as affordable for you — if it does, you can’t get a Marketplace premium tax credit either way.

Can I keep my doctor?

Often, yes — that’s much of the point. Before you choose a plan, check that your doctors and prescriptions are in its network. Rikor can help you check.

Can I use my ICHRA for my spouse and kids?

If your employer’s plan allows it, yes — as long as each family member you want reimbursed is enrolled in individual health insurance (or Medicare). Some employers give a larger allowance for families.

I’m on Medicare. Can I still use the ICHRA?

Generally yes. Medicare Parts A and B, or Part C, count as qualifying coverage, so the ICHRA can reimburse eligible Medicare premiums if your employer’s plan includes them.

What happens to my plan if I leave the job?

The allowance stops, but the policy is yours. You can usually keep it by paying the premium yourself, and leaving a job can also open a Marketplace special enrollment period if you want to change plans.

Is the money I get from the ICHRA taxed?

Reimbursements from an ICHRA that meets the federal rules are generally not taxable income to you.

Sources

General information, not tax, legal or insurance advice. Rules change and individual situations differ — confirm specifics with your tax adviser or benefits counsel.