For Employers · 2026
ICHRA Savings Estimator
Enter your current annual group health spend and a proposed ICHRA allowance to see the annual and per-employee difference — a simplified, employer-numbers-only estimate.
What is an ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) lets an employer fund a defined monthly allowance that reimburses employees, tax-free, for individual-market health insurance premiums — rather than sponsoring one group plan. Allowances can vary by employee class (such as full-time vs. part-time or by location), employees choose and buy their own plan, and there's no group participation minimum.
Figures shown are estimates only, based on the published data cited on this page. They are not a determination of eligibility, affordability, or benefit amount. Actual affordability and eligibility determinations require the applicable plan-year figures and your complete household information — confirm with a licensed advisor or the relevant government program before relying on these numbers.
Coming in a later phase
Employee Affordability Checker
This estimator compares your own spend numbers only. A future tool will check whether a proposed allowance is affordable for employees under IRS rules, using real plan-year premium data for their county and age — not invented here.
Questions, answered
What is an ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is an employer-funded account that reimburses employees, tax-free, for premiums on individual-market health insurance they buy themselves. The employer sets a defined monthly allowance — often varying by employee class — and employees choose their own plan.
Does this tool tell me if my proposed allowance is enough for employees?
No — and that's intentional. This simplified estimator compares only your own spend numbers (current group cost vs. proposed allowance cost). It does not check whether the allowance would be considered affordable for your employees under IRS rules, or what individual plans actually cost in their county. That requires current plan-year premium data specific to each employee's age and location — an employee affordability checker is planned for a later phase.
What does 'affordable' mean for an ICHRA under IRS rules?
IRS affordability safe harbors compare an employee's expected out-of-pocket cost for the lowest-cost silver plan in their area (after your allowance) against a percentage of their income — 9.96% for 2026 plan years. This percentage is indexed and changes most years, and the calculation itself requires real local premium data — a licensed advisor or benefits specialist can run this correctly for your group.
Is a lower number always better?
Not necessarily. A lower total spend doesn't automatically mean a better outcome — it only matters if the allowance is still genuinely useful to your employees for real coverage. Pair any cost estimate here with an affordability check before deciding.
Ready to see real numbers for your group?
A local licensed advisor can check affordability and compare real plan costs for your employees — free, no pressure. Also see our Group Health vs. ICHRA Comparison.