Revisiting Health Insurance Reimbursements for Individual Coverage

Small Business Owners, Here’s Why ICHRA is the Game-Changer Your Team Deserves

As a small business owner, you’re probably wearing multiple hats—managing your team, growing your business, and keeping up with an endless to-do list. We get it. One of the biggest challenges you likely face is providing affordable, flexible health insurance options for your employees while staying within budget. Some companies are not in a position where they want to offer a Group Plan, but they want to provide PRE-TAX reimbursement to employees who have individual coverage. That’s where Individual Coverage Health Reimbursement Arrangements (ICHRA) come in.

Let’s talk about why ICHRA might just be the best thing for your business and your team—and how partnering with Launch and our partner Thatch‍ can help you handle the tricky compliance stuff without breaking a sweat.

What Makes ICHRA Perfect for Small Businesses?

1. Your Team Gets to Choose What Works Best for Them
   One-size-fits-all health insurance plans? They’re a thing of the past! With ICHRA, your employees can pick individual health insurance plans that fit their needs. Whether they need a specific provider or want to prioritize certain coverages, they’re in the driver’s seat. No more guessing what plan might suit everyone on your team.
2. You Stay in Control of Costs
   Let’s face it—health insurance costs can feel like a runaway train with traditional group plans. ICHRA gives you the power to set a fixed monthly reimbursement amount (say, $300 per employee), keeping your budget predictable while still providing valuable benefits. This way, you can invest in your team without worrying about unexpected premium hikes.
3. It’s Tax-Friendly for You and Your Employees
   Here’s the cherry on top: ICHRA funds are tax-free for your employees and tax-deductible for your business. Everyone wins. Plus, you’re sticking to IRS rules, so no headaches there.
4. Compliant and Stress-Free
   ICHRA plans are built to meet Affordable Care Act (ACA) requirements, meaning you don’t have to worry about falling short on legal obligations. Your employees can choose ACA-compliant individual health insurance plans through state marketplaces like Covered California, Your Health Idaho, or Washington Healthplanfinder—some may even qualify for financial assistance to reduce costs.

Here’s How Thatch Makes It Even Easier

If the words "ACA compliance" make your head spin, you’re not alone. That’s why we’ve partnered with T to make the entire process simple and stress-free. Thatch specializes in helping small businesses like yours manage benefits efficiently and stay compliant.

• They Handle the Tough Stuff: Thatch ensures your ICHRA plan is set up to follow ACA, HIPAA, and ERISA regulations, so you don’t have to sweat the details
• They Help Your Employees Get Enrolled: Open enrollment can be overwhelming for your team, but Thatch has their back. They guide employees through their options, answer questions, and make sure they’re all set with the right plans.
• They Simplify Your Life: With Thatch managing benefits administration, you can focus on running your business while they take care of the nitty-gritty compliance and paperwork.

Why Now is the Perfect Time to Switch to ICHRA

Offering ICHRA isn’t just about providing health insurance—it’s about showing your team you care while building a work environment that attracts and retains top talent. Plus, it’s a smart way to manage costs without sacrificing quality. For small businesses especially, ICHRA is a modern, flexible alternative to traditional group plans, and your employees will appreciate the freedom it gives them.

Ready to Take the Next Step?

At Launch, we’ll work hand-in-hand with Thatch to ensure your ICHRA plan is set up perfectly, stays compliant, and runs smoothly. Whether you’re new to the concept or ready to dive in, we’re here to guide you every step of the way.

Schedule a call with us today and let’s talk about how ICHRA can transform the way you support your team. Trust us—it’s simpler than you think, and we’ll be with you every step of the way.

Your business deserves the best, and so does your team. Let’s make it happen.