Sponsor a plan, or fund an allowance?
The first employer decision is usually whether to sponsor a traditional group plan or set up an ICHRA — an Individual Coverage HRA that gives employees a tax-free allowance to buy their own plans. Both are great; they just fit different goals.
You want the simplicity of one plan (or a few) that you choose for everyone, predictable administration, and the traditional benefit employees recognize. It’s a proven fit for many small businesses, especially where the team wants the employer to make the plan decision.
You want budget control and flexibility. You set a tax-free monthly allowance — even different amounts by employee class — and employees pick the individual plan that fits their family. There’s no minimum participation and no group-size limit, which is ideal for small or distributed teams. Unused allowance stays with you.
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You can’t offer the same employees a choice between a group plan and an ICHRA, but you can offer different employee classes different arrangements (for example, a group plan for full-time staff and an ICHRA for part-time). We’ll design it to stay compliant.