With ICHRA, you are the owner of your medical plan. As a result, you are ultimately responsible for making sure your monthly payments are completed and that your health plan coverage stays effective.
Usually with ICHRA, you are responsible for paying out of pocket using a personal card or bank account. However, your employer has given you a great benefit by working with Zorro!
Instead of needing to pay for your premium and get reimbursed, your employer is passing the full premium amount to Zorro. Zorro will set up a virtual payment card for you called Zorro Pay. This card is loaded with the full premium amount, which you will then use to pay your carrier for the premium.
Essentially, Zorro is making the "R" (reimbursement) in ICHRA non-existent!
You won't need to pay anything upfront out of your personal card or account. If you choose a plan that is more expensive than your allowance, the additional amount will be deducted from your paycheck, just like a group plan. The monthly amount will be prorated based on your payroll schedule.
To learn how Zorro Pay works and how to set up payments with your carrier, read the next articles in this section.