ICHRA
What is an ICHRA?
ICHRA stands for “Individual Coverage Health Reimbursement Arrangement” and is the newest standalone HRA that enables employers of all sizes to reimburse their employees tax-free for individual health insurance premiums and unreimbursed medical expenses.
ICHRA Advantages
Personalized: The coverage can be tailored to meet an employee's needs.
Employer Sponsored: Your coverage is still sponsored by your employer through monthly contributions.
Multiple Insurance Carriers: Employees get to select the carrier of their choice in the individual insurance marketplace.
Plan Selection: A wide range of carriers, monthly premiums and deductible levels are available in the individual marketplace.
Why the change?
In order to bring a longer-term program and provide stabilization to BCSD budgeting, your medical coverage offered by BCSD will be an Individual Coverage Health Reimbursement Arrangement (ICHRA). An ICHRA is a flexible health benefit where employees select plans from the individual marketplace. This gives employees the most flexibility in enrolling in coverage that is tailored to their specific needs instead of the one-size fits all approach of group insurance.
WHo is BenefitBay
Benefitbay is a leader in ICHRA administration. BCSD has partnered with Benefitbay to assist with and support your upcoming medical shopping experience. Benefitbay believes that health and wellness coverage decisions are best made by the individual, and should be empowered by information, access and affordability.
On the platform you can:
• Update your information
• View employer contributions
• Include or update dependents
• Shop & enroll in plans
• Manage benefits.
Why should I use the ICHRA platform?
• Easily view and compare coverage options
• Review your specific premium contribution for coverage specific to your own needs and situation
• Pre-tax premium contribution
• No need to pay for coverage in advance and get reimbursed.
Enrollment Support
3 Ways to Access Benefitbay Support
• Email support at support@benefitbay.com
• Access the chat icon in Benefitbay to chat with a support member
• Schedule a 1:1 meeting through the Benefitbay site and speak directly with an advisor
Medicare Eligible Employees & Spouses
Medicare eligible employees and spouses will enroll in Medicare under the ICHRA plan.
• Medicare eligible employees are often the happiest employees.
• Medicare eligible employees also receive the largest contribution from their employer based on their age.
• Only under ICHRA, can Medicare eligible employees use their employer contribution to pay for their Medicare Advantage or Medicare Supplement plans.
• This frequently often reduces significantly or completely eliminates their health insurance contribution.
Tailored Guidance
Confidential and personalized planning through our team of advocates and our Medicare Checkup software to give you the confidence that you’re making the right decisions.
Enrollment Support & Advocacy
Assistance through the entire enrollment process to ensure that you’re preventing penalties and getting proper coverage. After you are enrolled, our team is available to provide continuous support for all things Medicare.
Get in touch
Flexible Spending Accounts (FSA)
Tax-advantaged FSAs provided by FLEX are a great way to save money. The money you contribute to these accounts comes out of your paycheck without being taxed, and you withdraw it tax-free when you pay for eligible health care and dependent care expenses.
Burlington CSD offfers you the following FSAs:
Health Care FSA
Dependent Care FSA
This year BCSD is going to have a short plan year from July 1 – December 31, 2025, to coincide with the new renewal period for your medical coverage of January 1, 2026.
Moving forward your FSA plan year will run from January – December 31st.
With the short plan year effective July 1st, you may only put in half of the contributions from July 1, though December 31, 2025. Then when you re-enroll in your medical plan effective January 1, 2026, you can then enroll in the FSA for a full year again moving forward. At that time you will be able to elect whatever the new full amount is for 2026.
Contribution Limits
What’s An Eligible Expense?
Health Care FSA
Contribute up to $1,650 from 7/1/25-12/31/25
Dependent Care FSA
Contribute up to $2,500 from 7/1/25 – 12/31/25, or $1,250 if you are married and filing separately.
What’s An Eligible Expense?
What’s An Eligible Expense?
What’s An Eligible Expense?
Health Care FSA: Plan deductibles, coinsurance, copays, and other out-of-pocket expenses. To learn more, see IRS Publication 502 at www.irs.gov
Dependent Care FSA: Child daycare, babysitters, home care for dependent elders, and related expenses. To learn more, see IRS Publication 503 at www.irs.gov
Important
What’s An Eligible Expense?
Managing Your FSA(s)
You must enroll if you want to contribute to an FSA in 2025, even if you currently participate. Keep in mind that once enrolled, you are only able to make changes due to a qualifying change in family or benefits enrollment status.
Estimate Carefully
Keep in mind, FSAs are “use-it-or-lose-it” accounts.
Managing Your FSA(s)
What’s An Eligible Expense?
Managing Your FSA(s)
When you enroll in a Health Care FSA, you will receive a debit card to use when you receive services to pay for eligible expenses. Depending on the transaction, you may need to submit receipts or other documentation. Even if not required for submission, be sure to keep your receipts.
High-deductible Health plan (HDHP) information
Eligibility for a Health Savings Account (HSA)
Eligible individuals are those who are:
- Covered under a High Deductible Health Plan (HDHP).
- Not covered by any other medical plan that is not an HDHP. This includes a spouse’s medical coverage unless it’s an HDHP.
- Not enrolled in a traditional Health Care FSA in 2024.
- Not enrolled in Medicare, including Part A.
- Not claimed as a dependent on another person’s annual tax return.
- Veterans who have not received treatment through the Veteran’s Administration other than preventive care within the past three months.
HDHP Advantages
Tax-advantaged savings account
Selecting an HDHP allows you to open a Health Savings Account (if you qualify based on IRS regulations) and make tax-free contributions. All withdrawals from your HSA are tax-free, as long as you use the money to pay for eligible health care expenses. In addition, all the money in the account is yours and will never be forfeited. It rolls over from year to year, and you can take it with you if you leave the school or retire. After age 65, you can withdraw funds for any reason without a tax penalty—you pay ordinary income tax only if the withdrawal isn’t for eligible health care expenses. Burlington CSD does not provide an HSA account. The employee will need to open their own HSA account with a bank or administrator of their choice.