ICHRA (Individual Coverage Health Reimbursement Arrangement) is one of the few benefit structures that allows a Florida small business to give different contribution amounts to different employee groups without nondiscrimination problems. The 2019 final regulations defined 11 permitted classes, each of which can receive a different ICHRA contribution. Used strategically, the class structure lets employers tailor benefits to recruitment targets — higher contribution for hard-to-recruit roles, lower contribution for high-turnover roles.
| Total Employer Size | Minimum Class Size |
|---|---|
| Fewer than 100 employees | 10 employees per class |
| 100-200 employees | 10% of total workforce per class |
| 200+ employees | 20 employees per class |
Smaller classes are not allowed. A 12-employee Florida business cannot create 6 different classes — most would fail the minimum size rule.
| Design | Example |
|---|---|
| FT vs PT split | Full-time class: $500/mo; part-time class: $200/mo |
| Geography-based | Miami office: $600/mo (high cost area); Jacksonville office: $450/mo |
| Salaried vs hourly | Salaried class: $550/mo; hourly class: $400/mo |
| Seasonal carve-out | Year-round: $500/mo; seasonal: $0 (can't be excluded but minimum class size matters) |
Within a class, the employer CAN vary contribution by:
The employer CANNOT vary based on health status, smoker status (within a class), or any other prohibited basis.
A Florida small business with 30 employees across two cities might design:
This satisfies the 10-EE minimum per class while delivering geography-tailored contributions.
An employer offering a traditional group plan to one class CANNOT offer ICHRA to the same class. But the employer CAN offer a group plan to one class (e.g., full-time salaried) and ICHRA to a different class (e.g., part-time hourly). This 'split benefit' approach is increasingly common for Florida businesses with mixed workforces.
No — the 10-employee minimum applies for groups under 100 total. You'd need to combine smaller groups into a larger class to qualify (e.g., merge 'salaried' and 'hourly' into one 'all FT' class).
Yes — within a class, contributions can vary by age (up to 3:1 ratio) and family composition. You cannot vary based on health, tenure, performance, or any other criterion.
FT-only ICHRA + PT-excluded is the simplest. Next is FT + PT with different contribution amounts (when business has 10+ in each class). Geographic class structures appear at firms with multi-city Florida operations.
A licensed Florida broker can design a class structure that fits your workforce and recruitment goals.
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