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

Tiered Employee Classes for ICHRA in Florida Small Business

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.

The 11 Permitted ICHRA Classes

1. Full-time employees (30+ hours/week)
2. Part-time employees (under 30 hours/week)
3. Salaried employees
4. Non-salaried (hourly) employees
5. Employees in a particular geographic rating area
6. Seasonal employees
7. Temporary employees of a staffing firm
8. Employees covered under a collective bargaining agreement
9. Non-resident aliens with no US-source income
10. New hires (those hired after a specified date — limited use)
11. Combinations of any of the above (e.g., 'full-time employees in the Florida rating area')

Class Size Minimums

Smaller classes are not allowed. A 12-employee Florida business cannot create 6 different classes — most would fail the minimum size rule.

Practical Class Designs for Florida Small Business

Within-Class Variation Rules

Within a class, the employer CAN vary contribution by:

• Age (older employees get more, up to 3:1 ratio mirroring ACA age-banded premium)
• Family size (single, +spouse, +children, family — varying by tier)

The employer CANNOT vary based on health status, smoker status (within a class), or any other prohibited basis.

Combination Class Strategy

A Florida small business with 30 employees across two cities might design:

• Class A: Full-time + Miami location: $550/mo (15 EE)
• Class B: Full-time + Jacksonville location: $450/mo (10 EE)
• Class C: Part-time anywhere: $200/mo (5 EE)

This satisfies the 10-EE minimum per class while delivering geography-tailored contributions.

Group Plan vs ICHRA Class Rule

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.