The ICHRA 90-day notice is an important part of your responsibilities as an employer when offering an ICHRA employer plan. This notice is required under federal law to ensure your employees understand how the employer ICHRA plan works. Zorro has prepared this document for you, and it is available in both the admin and employee portals.
Key information included in the ICHRA 90-day notice:
Explanation of ICHRA: Explains that you as the employer are offering ICHRA to reimburse employees for the cost of individual health insurance.
Amount of allowance: Includes information on how employees can view the monthly allowance that will be provided to them.
Eligibility: Outlines who is eligible for the ICHRA, which can be based on employment type, full- or part-time status, or other criteria.
Instructions on individual health insurance: Informs employees that they need to enroll in individual health insurance to participate in the ICHRA and be reimbursed.
Opt-out information: Informs employees that they can opt out of the ICHRA if they prefer, and how to do so.
Impact on premium tax credits: Explains that if an employee accepts the ICHRA, they won't qualify for premium tax credits on the Health Insurance Marketplace. The notice explains how the allowance may impact their eligibility for these tax credits and how to calculate affordability.
QLE (Qualifying Life Event) information: Mentions that employees who lose or gain eligibility for ICHRA can make mid-year changes to their individual coverage.
The notice must be sent at least 90 days before the start of each new ICHRA plan year. For newly eligible employees (e.g., new hires), the notice must be provided no later than the date the ICHRA coverage takes effect. Providing this notice is crucial to ensure compliance with ICHRA regulations and to give employees time to make informed decisions about their healthcare coverage.