Under the proposed legislation filed Feb. 24, small businesses with between two and 50 employees would qualify for the credit if they provide an ICHRA to at least some of their employees and contribute a minimum of $400 per worker annually. The credit amount would be determined by multiplying $400 by the number of employees enrolled in an ICHRA during the taxable year.
ICHRAs allow employers to reimburse workers for the cost of ACA plan premiums. ICHRA adoption grew 29% year over year between 2023 and 2024. The number of people nationwide enrolled in an ICHRA model now exceeds 200,000, which does not include dependents — some estimates have said more than 500,000 people are enrolled.
