Updated April 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

ICHRA for Florida Small Business

An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows Florida employers of any size to reimburse employees tax-free for individual health insurance premiums they purchase on their own. ICHRAs were established in 2020 and have grown in adoption among small businesses that want to offer health benefits without the complexity of sponsoring a group plan. There are no employer size requirements and no caps on reimbursement amounts.

ICHRA Key Rules

Rule	ICHRA Requirement
Employer size	Any size — no minimum or maximum employee count
Reimbursement cap	None — employer sets any monthly amount
Employee eligibility requirement	Employee must be enrolled in qualifying individual coverage (ACA marketplace or off-exchange)
ACA subsidy interaction	Employees offered affordable ICHRA lose eligibility for ACA premium tax credits
Employee classes	Can vary by defined class (full-time, part-time, seasonal, geographic) — cannot vary by individual
Notice requirement	90-day advance notice to employees before plan year start
Tax treatment	Employer reimbursements are tax-deductible; excluded from employee income if employee is enrolled in qualifying coverage

Setting up an HRA for your business

(877) 417-2421

How ICHRA Works in Practice

Employer sets monthly reimbursement amount (e.g., $300/month per full-time employee, $150/month for part-time)
Employees purchase individual health plans — they can use Florida's ACA marketplace (floridaplanfinder.com), an off-exchange plan, or a spouse's employer plan does not qualify
Employees submit proof of premium payment to the employer (or ICHRA administrator)
Employer reimburses up to the set monthly amount — tax-free to the employee

ICHRA administration platforms (PeopleKeep, Take Command Health, etc.) handle documentation, reimbursement tracking, and compliance for a monthly fee typically ranging from $15–$30/employee/month.

When ICHRA Makes Sense for Florida Businesses

Remote or geographically dispersed employees — each employee buys a plan in their own market
Businesses with 1–4 employees that cannot meet small group participation minimums
Employers who want a fixed, predictable health benefit cost — no rate surprises at renewal
Businesses with employees who already have strong individual plan preferences
Companies that want to differentiate reimbursement by employee class (e.g., higher amount for full-time than part-time)

Explore ICHRA and Group Plan Options for Your Florida Business

Compare both approaches side by side — no cost, no obligation.

Talk to a Broker

Licensed Florida Health Insurance Producer · NPN #21249133Information on this page is for general reference and is updated regularly. Verify current plan availability and costs at HealthCare.gov before enrolling.