News & Articles


New Type of HRA Allows Tax-Preferred Reimbursement of Individual Health Insurance

Authored by: Jerry Rich
Date: September 11, 2019
While there are several requirements to administer an ICHRA, some churches may find this type of HRA to be beneficial.

Starting January 1, 2020, employers may use a new kind of health reimbursement arrangement (HRA) to fund individual health insurance of employees tax-free. According to a final rule issued this summer, the employer-funded Individual Coverage Health Reimbursement Arrangement (ICHRA) may reimburse individual insurance when certain conditions are met.

FCMM has developed an ICHRA summary and checklist for churches that may want to consider implementing such a program. Because of the difficulties of complying with healthcare privacy concerns, we recommend that a church-administered ICHRA be used only for insurance premiums; inclusion of other medical expense reimbursement would best be handled by a third-party administrator.

Download the summary/checklist at the link below.