Georgia Navigator Practice Exam

What does an Individual Coverage Health Reimbursement Arrangement (ICHRA) allow employees to do?

1. Choose their own qualified health plans on the marketplace

2. Access group health plans without any premium costs

3. Only enroll in state-funded health plans

4. Participate without employer funding

The correct answer is: Choose their own qualified health plans on the marketplace

An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows employees to choose their own qualified health plans on the health insurance marketplace. This arrangement provides flexibility for employees to select the health insurance options that best meet their individual needs, rather than being limited to a single group health plan offered by their employer. Employers can set aside funds in the ICHRA to reimburse employees for their premiums and other qualified medical expenses, enhancing their ability to tailor health coverage to their unique circumstances. This model supports a broader range of choices for employees and aligns with the goal of promoting individualized healthcare solutions. In contrast, the other options do not accurately reflect the nature of an ICHRA. While accessing group health plans without premium costs, enrolling only in state-funded plans, or participating without employer funding may sound beneficial, they do not encapsulate the primary function of an ICHRA, which is to empower employees to select and finance their own health coverage through individual plans.