EEOC Clarifies Permissible Employer ICHRA Contributions Under the ADA

The Equal Employment Opportunity Commission (EEOC) released an opinion letter clarifying what is permitted for employer contributions or funding of an individual coverage HRA (ICHRA) under the Age Discrimination in Employment Act (Act). 

The EEOC addressed two scenarios: (i) an ICHRA offering where the employer makes the same monthly dollar amount available to all ICHRA participants; and (ii) an ICHRA offering where the employer increases the monthly dollar amount by employee age (with older employees receiving more). The EEOC’s opinion letter indicates that both arrangements are permitted under the ADEA. The first scenario is okay because the employer is making the same amount available to all participants regardless of age. The second scenario is okay as well, whether the amount made available by the employer reflects a percentage of the individual’s health insurance premium or simply increases with an employee’s age, because older employees receive a larger monthly amount. 

You can find the EEOC’s opinion letter here – https://www.eeoc.gov/commission-opinion-letter-individual-coverage-health-reimbursement-arrangements-ichra-under-adea?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=

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