ICHRA vs. Group Plan Calculator
Put your group premium next to a monthly ICHRA allowance. See the annual cost of each, and whether the allowance clears the ACA affordability line for a lower-paid employee.
Your Numbers
Example Figures
What It Says
Four Questions Before You Switch
- Which employees would be better off on the individual market, and which would lose a plan they like?
- Will you use classes, such as full-time and part-time, and set a different allowance for each?
- Does the allowance rise with age, or stay flat for every employee?
- Have you set a date for the 90-day notice employees must receive before the plan year begins?
Three inputs give you a cost comparison.
This is a screening tool for the decision, not a quote.
Group Plan Cost
Your monthly employer cost per enrolled employee, times the number who enroll, times twelve. Use only your share of the premium, not what employees pay.
ICHRA Cost
The monthly allowance times the same enrolled count, times twelve. An ICHRA reimburses up to the allowance, so this is the most you would spend, not a floor.
The Affordability Test
An ICHRA is affordable when the employee’s share of the lowest-cost silver plan stays at or under a set percentage of household income: 9.96% for 2026 and 10.22% for 2027. The tool compares the two for the income you enter.
Cost is one side of an ICHRA decision.
The calculator prices the allowance. It does not decide whether the switch suits your people.
Who Stays and Who Leaves
Older and sicker employees often fare worse on the individual market, while younger ones may gain. A single average hides that split.
Class Design
Splitting employees into classes, or scaling the allowance by age, changes both the cost and the affordability result. This tool uses one flat allowance.
The Employee Experience
Employees choose and buy their own plans. The tool cannot show how easy that is for your team or what networks they would face.
What employers ask about ICHRA costs.
Is an ICHRA cheaper than a group plan?
Not by default. It gives you a fixed monthly number you control, which can lower or raise your cost depending on the allowance you set and who enrolls. The comparison above shows the gap for your figures.
What does affordable mean for an ICHRA?
For employers subject to the ACA employer mandate, the employee’s cost of the lowest-cost silver plan after the allowance must not exceed a set share of household income. The threshold is 9.96% for 2026 and 10.22% for 2027.
How much notice do employees need?
Employees must receive written notice at least 90 days before the plan year starts. Plan the switch around that date.
Can I offer different allowances to different employees?
Yes, within defined classes such as full-time and part-time, or by age band, under the rules for ICHRA classes. Those rules are specific, so confirm your design before you publish it.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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