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RedHealth Advisors

Health benefits your business can actually keep.

Three ways to help your team with health coverage, each with real tradeoffs. We model them against your actual employees and budget before you commit to one.

Free options · About 2 minutes

What is your ZIP code?

Plans and prices are set by county.

Three ways to offer health benefits.

01

ICHRA.

Now called a CHOICE Arrangement

How it works
You set a monthly allowance. Employees buy their own individual plans and you reimburse them tax-free, up to that amount.
Good fit for
Teams spread across counties or states, businesses that want a fixed budget, owners tired of group renewals.
Watch for
Employees must enroll in individual coverage. If the allowance is affordable under the 2027 test (10.22% of income), they cannot use premium tax credits instead. Written notice is due 90 days before the plan year.
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02

Traditional group plan.

One shared plan for the team

How it works
You pick a plan from one carrier, pay part of each employee's premium, and everyone is on the same network and benefits.
Good fit for
Teams concentrated in one area, employees who want one familiar plan, businesses competing for talent on benefits.
Watch for
Carriers set minimum participation, and renewals can rise sharply. Businesses under 25 full-time-equivalent employees buying through SHOP may qualify for a tax credit for up to two years.
Compare this for my team
03

QSEHRA.

For businesses under 50 employees

How it works
A simpler reimbursement arrangement for small employers that do not offer a group plan, with yearly IRS caps.
Good fit for
Very small teams that want to help with premiums without running a plan.
Watch for
2026 caps are $6,450 self-only and $13,100 family. 2027 caps have not been published yet. It reduces or removes an employee's premium tax credit.
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What we need to compare them.

Employer guides.

All guides →

Common questions.

All questions →
What is an ICHRA, now called a CHOICE Arrangement?

An ICHRA, which HealthCare.gov now calls a CHOICE Arrangement, lets an employer reimburse employees tax-free, up to a set monthly amount, for individual health insurance premiums and qualified medical costs instead of offering a traditional group plan. Employers of almost any size can offer one if they have at least one employee who is not an owner or an owner's spouse. Employees must enroll in their own individual coverage, such as a Marketplace plan, and employers can set different amounts for different employee classes.

Source. healthcare.gov

How does an ICHRA affect my employees' premium tax credits?

An employee cannot get a premium tax credit for any month they are covered by the ICHRA. If the offer is "affordable," the employee cannot claim a credit even by opting out; for 2027, it is affordable if the employee's cost for the lowest-cost silver plan in their area, after the reimbursement, is no more than 10.22% of household income. If it is unaffordable, the employee may opt out and use the premium tax credit instead. Employers must give written notice 90 days before the plan year starts.

Sources. healthcare.gov, irs.gov

What is a QSEHRA?

A QSEHRA, or qualified small employer HRA, lets a business with fewer than 50 full-time-equivalent employees that does not offer a group health plan reimburse employees tax-free for health insurance and medical costs. For plan years beginning in 2026, reimbursements are capped at $6,450 for self-only coverage and $13,100 for family coverage; the 2027 limits have not been published yet. If the QSEHRA is affordable, the employee cannot get a premium tax credit; if it is not, the credit is reduced by the QSEHRA amount.

Sources. irs.gov, irs.gov

Should my small business offer a traditional group health plan?

A traditional small-group plan can be a good fit when you want one shared plan, predictable enrollment, and coverage your team recognizes. Small-group plans must cover essential health benefits, insurers set minimum participation rules, and businesses with fewer than 25 full-time-equivalent employees that buy through SHOP may qualify for the Small Business Health Care Tax Credit for up to two consecutive years. We compare group, ICHRA, and QSEHRA costs for your actual team before you decide.

Sources. healthcare.gov, healthcare.gov

See your options in about two minutes. Free.

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