Can an employer offer a group plan to one class and an ICHRA to another?

Yes, when the classes are permitted under federal ICHRA rules and all applicable same-terms, class-size, carrier, notice and plan requirements are satisfied.

Can employee health or claims determine an ICHRA class?

No. Health status, diagnoses, claims, prescriptions and projected risk do not determine employee classes.

What is the ICHRA minimum class size?

When the rule applies, the minimum is generally 10 employees for employers with fewer than 100 employees, 10 percent for employers with 100 to 200 employees, and 20 employees for employers with more than 200 employees.

CHOICE CLASS BUILDER

One employer.
More than one funding path.

ChoiceBenefits helps employers and brokers evaluate whether Group, level-funded and ICHRA / CHOICE can work together through federally permitted employee classes. The strategy begins with employment facts—not health status.

Check a proposed class See Group + CHOICE examples

FEDERALLY PERMITTED CLASSES

Build around bona fide employment distinctions.

These categories may be used when the arrangement satisfies the complete federal rules. Combinations can be permitted, but combining classes may trigger a minimum-size requirement.

Health status and claims never define the class.Diagnoses, prescriptions, high-cost claimants, projected risk and expected healthcare use may inform the employer’s overall funding analysis, but they cannot be used to place individual employees into Group or ICHRA.

Full-timeUsing the plan’s consistently selected federal definition.

Part-timeDefined consistently with the corresponding full-time class.

SalariedA permitted employment class, subject to applicable minimum-size rules.

Non-salariedIncluding hourly employees when properly classified.

GeographicRating area, state or permitted multi-state region based on primary worksite.

SeasonalUsing a permitted and consistently applied definition.

Collectively bargainedEmployees covered by a qualifying collective bargaining agreement.

Waiting periodEmployees who have not completed a compliant waiting period.

Temporary staffingQualifying temporary employees of a staffing firm.

Nonresident aliensEmployees without U.S.-based income under the applicable definition.

Permitted combinationsTwo or more permitted classes, with added class-size scrutiny where applicable.

Prospective new hiresA special rule may preserve Group for existing employees and use ICHRA for eligible future hires.

PRELIMINARY CLASS-SIZE CHECK

Does the proposed ICHRA class clear the federal minimum?

The minimum-size test applies only in specified Group-plus-ICHRA situations. This tool provides an initial screen; final design requires complete facts and administrator or legal review.

The employee count uses the employer’s reasonable expectation for the first day of the plan year. The class test generally looks at employees offered the ICHRA—not employees who ultimately enroll.

GROUP + CHOICE ILLUSTRATIONS

Where a blended funding strategy may fit.

These are examples for evaluation, not automatic recommendations or confirmation that a carrier will accept the structure.

ANGLE + CHOICE

Salaried and hourly

Evaluate an available Angle level-funded plan for one permitted class and ICHRA / CHOICE for another, subject to class-size, underwriting and eligibility requirements.

MULTI-STATE

Headquarters and remote markets

Keep Group coverage where the network and pricing work, while evaluating ICHRA for employees whose primary worksites fall within a permitted geographic class.

TRANSITION

Existing employees and new hires

Use the prospective new-hire rule where appropriate while preserving the existing Group offer for the grandfathered population.

What must remain consistent

No employee-level choice between Group and ICHRA within the same class.
ICHRA generally offered on the same terms within each class.
Class definitions established and applied consistently.
Required notices, substantiation, affordability and reporting completed.

What still requires confirmation

Carrier eligibility, participation and underwriting.
Applicable minimum class size and controlled-employer facts.
Contribution design, including permitted age and dependent variation.
State market, network and employee affordability results.

Federal references: CMS HRA FAQs and 2019 final-rule materials published by the IRS. This page provides general information, not legal or tax advice.

Bring us the census and the renewal.

We will compare the employer as a whole and by potentially permitted class before selecting the funding path.

Build the employer strategy