Can I use this result as a final decision?
Use it to organize assumptions and questions. Review relevant facts and options before acting.
Benefits & Insurance
ICHRA vs. Group Health Cost Calculator
Compare your current employer budget with a proposed ICHRA allowance scenario. Keep maximum funding, modeled reimbursements, and employee implications separate.
Employer planning · Free initial result · Method version 1.0.0Inputs stay in memory. Nothing is saved or submitted automatically.
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Understand the result
Method & assumptions
Current cost = Σ enrolled × monthly employer cost × months, plus fees. Maximum proposed budget = Σ proposed participants × allowance × months, plus administration and setup. Employer budget difference = current cost − proposed maximum. Modeled cash outlay applies the selected utilization only to allowances.
Hypothetical worked example
20 employees × $600 × 12 = $144,000 current cost. A $450 allowance plus $30 monthly administration per enrolled employee and $1,000 setup gives a $116,200 first-year maximum budget. Difference: $27,800, not guaranteed savings.
Scope and limitations
- User-entered budget comparison only. CMS also uses CHOICE Arrangement terminology for ICHRAs; this is one comparison tool, not a separate product.
- Employee impact remains unassessed without comparable individual premiums, contributions, and coverage. No coverage quote, eligibility finding, or affordability determination.
- An allowance is a funding limit, not an insurance premium. Retaining group coverage remains a legitimate option.
Sources
CMS, Employer Initiatives · S20
HealthCare.gov, Individual coverage HRA · S23
Prepared by Workforce Nexus for educational planning. Not a legal, tax, insurance eligibility, or professional determination.
Are the examples benchmarks?
No. Example numbers are hypothetical and demonstrate the method. Replace them with your own information.