What are the ICHRA classes?

Written by Aimee Reynard
Updated 2 months ago
Note: The ICHRA cannot be used to reimburse premiums for an employer-sponsored group health plan.

Full-time employees. Businesses can choose whether they define “full-time employment” as averaging 30 hours or more a week, or as averaging 40 hours or more a week. However, if the business is intending to use the ICHRA to satisfy the employer mandate, they need to consider full-time employees as averaging at least 30 hours a week.

Part-time employees. Businesses can choose whether to define “part-time employment” as averaging under 40 hours a week or as averaging under 30 hours a week.

Seasonal employees. Seasonal employees are those who are hired into a position for a short-term.

Temporary employees who work for a staffing firm. These employees provide temporary services for the business, but are formally employed through a staffing firm.

Salaried employees. Salaried employees are those who are paid on an annual basis and aren't eligible for overtime pay.

Hourly employees. Hourly employees are those who are paid on an hourly basis and can earn overtime.

Employees covered under a collective bargaining agreement. These employees have entered into a written agreement between the business and their trade union on the conditions of employment, rate of pay, hours of work, and other working conditions. Employees in a waiting period. These are employees who are currently in a waiting period for health benefits. Businesses can choose to implement waiting periods of up to 90 days.

Foreign employees who work abroad. These employees work outside of the United States.

Employees in different locations, based on rating areas. These employees live outside the individual health insurance rating area of the business’s physical address.

A combination of two or more of the above. Businesses can also create additional classes by combining two or more of the above classes. For example, they may create a class of full-time employees who live outside the business’s rating area. 

Did this answer your question?