A public employer ICHRA start date depends on two calendars, the 90-day notice and the board meeting schedule.
Written notice must reach employees at least 90 days before the plan year begins. A board that has to approve contributions, elect a cap option or ratify a bargaining agreement needs to act well before that.
What to put on the calendar.
Count Back 90 Days
Start from the plan year date and subtract 90 days. That is the latest the notice can go out.
Find the Meeting
List the board meetings between now and the notice date. Approval has to land before the notice.
Cap Election
If the board elects a Public Act 152 option, that vote belongs on the same calendar.
Bargaining Calendar
If unions are involved, agreement dates and ratification votes affect the start date.
Notice Content
The notice must be ready for the board to review before it is sent.
Procurement
Public bodies often have procurement steps. Build them into the schedule.
Working the Board Calendar Backward
A public employer cannot start an ICHRA until a quorum of the board has voted, and the written notice to employees has its own deadline. Counting back from the plan year start shows how many meetings are left.
The latest notice date for each plan year start
Federal rules require the written notice at least 90 calendar days before the plan year begins. These are the latest dates for the common start dates.
| Plan year starts | Latest notice date | Where that leaves the board |
|---|---|---|
| January 1, 2027 | October 3, 2026 | Already passed for an HRA that exists today; see the newly established exception below |
| April 1, 2027 | January 1, 2027 | The vote has to happen at a November or December meeting |
| July 1, 2027 | April 2, 2027 | A natural fit for units whose budget year starts July 1 |
| October 1, 2027 | July 3, 2027 | The vote belongs at a May or June meeting |
| January 1, 2028 | October 3, 2027 | Leaves the whole spring and summer to design and vote |
Source: 26 CFR 54.9802-4(c)(6). Dates counted by calendar days. The notice must state the plan year start and end dates, the maximum allowance, the opt-out right and the premium tax credit consequences.
The exception for a newly established ICHRA
If an employer establishes the HRA fewer than 120 days before the first day of its first plan year, the notice is due by the date coverage may first take effect for the participant, not 90 days earlier. The exception applies only to the first plan year. For a plan year starting January 1, 2027, that means the HRA must be established after September 3, 2026. It removes the notice obstacle, not the readiness work: classes, allowance schedule, vendor setup and employee communication still have to be ready, and the board vote has to come first. New hires who are not eligible at the start of a plan year get their notice by the date their coverage may first take effect.
Source: 26 CFR 54.9802-4(c)(6). Confirm the application to your unit with counsel.
An illustrative schedule for a January 1, 2028 start
The steps and months below show the order in which a typical Michigan board would work. Your meeting calendar will differ.
| When | Step | Why it comes here |
|---|---|---|
| May 2027 | Staff presents the ICHRA concept, the class structure and a cost model | Gives the board a full cycle before it has to vote |
| June 2027 | Board reviews allowance schedule and Public Act 152 option | Shows the allowance against the hard cap or the 80 percent limit |
| August 2027 | Board votes on the ICHRA design and, if used, the Public Act 152 election | Leaves time for a second attempt if the vote is deferred |
| September 2027 | Employee meetings and drafting of the notice | Notice content is fixed by regulation and must match the board action |
| By October 3, 2027 | Written notice delivered to every eligible employee | The federal deadline for a January 1 start |
| November 2027 to January 2028 | Employees shop and enroll; the unit confirms coverage proof | Reimbursement depends on enrollment in individual coverage |
The schedule is illustrative and is not a recommendation for any unit.
What the votes require
The 80 percent option is elected by a majority vote of the governing body each year, before the coverage year begins. The exemption available to local units is a two-thirds vote, also each year. Absences matter, because two-thirds is counted against the governing body, so a member who cannot attend can decide the outcome.
| Board size | Majority needed | Two-thirds needed |
|---|---|---|
| 5 members | 3 | 4 |
| 7 members | 4 | 5 |
| 9 members | 5 | 6 |
Sources: MCL 15.564 for the 80 percent election; Michigan Municipal League fact sheet for the exemption vote. Counts are the arithmetic of the fractions and assume the vote is measured against all seats; confirm the measure with counsel and your charter.
Open Meetings Act timing that affects the plan
- A regular meeting schedule must be posted within 10 days after the first meeting of the calendar or fiscal year, so a board can see its remaining dates early.
- A special or rescheduled meeting needs notice posted at least 18 hours ahead, which means a missed vote can be recovered in days, not weeks, if a quorum is available.
- Proposed minutes must be public within 8 business days after a meeting, and approved minutes within 5 business days after approval, which is the public record of the vote.
Sources: MCL 15.265 and MCL 15.269. Open meetings questions belong with the unit’s counsel.
The questions public employers ask about ICHRA timing.
What is the 90-day rule?
Written notice must reach eligible employees at least 90 days before the plan year starts.
What if the board meets only monthly?
Plan the vote for the meeting that falls before the notice deadline, and have a backup meeting.
Can a late vote still start the plan?
It may force a later start date. The notice date controls.
Which dates apply to a January 1 start?
Notice for a January 1, 2027 start was due October 3, 2026. Our notice deadlines page lists dates for later 2027 starts.
Do union ratification votes matter?
Yes. If the change is bargained, ratification dates affect the start.
Who prepares the board materials?
We prepare cost models and a summary for the board.
Where do I start?
With the plan year date. We work backward and build the calendar with you.
General information about individual coverage HRAs, not legal or tax advice. Plan-specific questions belong with ERISA counsel and your tax advisor, and we will bring them in.
Where these details come from.
This page summarizes public guidance reviewed in October 2026. Rules change, so confirm current requirements with counsel.
CMS: Individual Coverage HRAs →
U.S. Department of Labor: Employee Benefits Security Administration →
More ICHRA questions and the industries they affect.
Public Act 152 Cap Options
Fit an allowance inside the Michigan limits.
Bargaining Agreements
Union classes and the agreement calendar.
Class Assignment
Sort each employee group into a permitted class.
ICHRA for Michigan Public Employers
Boards, unions and Public Act 152.
ICHRA for Child Care and Early Education
Teachers, aides and school-year schedules.
ICHRA for Medical and Dental Practices
Clinical staff, owners and associates.
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