ICHRA Calculator

Estimate Individual Coverage HRA costs, compare to group health coverage, and check ACA affordability — by state and employee class

Free • No Login Required • Calibrated to 2026 Market Data

What This Means For You

An ICHRA lets you give employees a monthly allowance to buy their own health coverage instead of managing a group plan. It is a newer option that works especially well for businesses with employees in different states or those who want to offer benefits without the complexity of choosing a one-size-fits-all plan.

This tool shows you how much an ICHRA could cost compared to your current group plan, and whether it makes sense for your situation. Enter your current setup below and you will see a side-by-side comparison with real numbers.

Step 1 — Your Company

Company size, location, and workforce demographics shape both your ICHRA budget and employees' marketplace premium costs.

Number of Employees ?Total employees you plan to cover under the ICHRA. ICHRAs are available to employers of any size — from 1 to 10,000+ employees.Source: IRS Final Rules on ICHRAs, 84 FR 28888 (2019)

State ?Marketplace premiums vary widely by state: the 2026 average benchmark silver premium for a 40-year-old runs from $401 a month (New Hampshire) to $1,299 (Vermont). Employees purchase individual plans on their state's ACA marketplace, so location directly affects how far your ICHRA allowance goes.Source: KFF, Average Marketplace Premiums by Metal Tier, 2026

Average Employee Age 38 ?Average age of your workforce. ACA marketplace plans may charge a 64-year-old up to 3 times what a 21-year-old pays, using the federal default age curve unless the state sets its own (New York and Vermont do not rate by age). This affects whether your ICHRA allowance fully covers premiums.Source: CMS federal default age curve and state age curves

Average Household Income ?Used to determine ACA affordability. Under ICHRA rules, the employee's required contribution for self-only silver plan coverage cannot exceed 9.96% of household income in 2026 for the offer to be considered affordable.Source: IRS Rev. Proc. 2025-25; 26 CFR 1.36B-2(c)(5)

Employee Class Breakdown

ICHRAs allow different allowances by employee class. Adjust the mix of your workforce below.

% Full-Time 60%

% Part-Time 15%

% Salaried 15%

% Hourly 10%

Step 2 — ICHRA Design

Set your monthly ICHRA allowance and optional variations by age and family size. ICHRAs give you granular control over benefits spending.

Monthly ICHRA Allowance per Employee ($) ?The monthly amount you reimburse each employee tax-free for individual health coverage premiums. There is no IRS maximum for ICHRAs (unlike QSEHRAs).Source: IRS Final Rules, 84 FR 28888

Vary allowance by age? ?ICHRAs permit age-based variation up to a 3:1 ratio (oldest-to-youngest). This mirrors the ACA age rating curve and lets you offer more to older employees whose premiums are naturally higher.Source: 26 CFR 54.9802-4; IRS Final Rules on ICHRAs

Allowance for Youngest (Age 21) ($)

Allowance for Oldest (Age 64) ($)

Allowances are linearly interpolated between youngest and oldest. Max ratio: 3:1.

Vary allowance by family size? ?You can offer different ICHRA amounts based on family status. The rules let the allowance increase with the number of dependents covered; the multipliers below are your choice.Source: IRS Final Rules on ICHRAs, 84 FR 28888

Single Multiplier

EE + Spouse Multiplier

Family Multiplier

Step 3 — Compare to Group Plan

Enter your current (or expected) group health plan costs to see how ICHRA stacks up. If you don't currently offer coverage, leave the premium at $0.

Current Group Plan PEPM ($) ?Per-employee-per-month cost for your current group health coverage plan (blended across all tiers). The 2025 national average total premium for single coverage was $9,325 a year, about $777 a month.Source: KFF 2025 Employer Health Benefits Survey

Employer Contribution % 75% ?Percentage of the group premium paid by the employer. On average, employers pay 84% of the premium for single coverage (workers pay 16%). With ICHRA, you control 100% of your spending since you set the allowance amount.Source: KFF 2025 EHBS

ICHRA Cost Analysis

Total Annual ICHRA Cost to Employer

Monthly allowance x employees x 12

Based on your ICHRA design inputs above

Total Annual Group Plan Cost

PEPM x employees x 12 x employer contribution

Estimated Annual Savings with ICHRA

Compared to traditional group plan

Employee Perspective: Allowance vs. Marketplace Premium

Estimated Marketplace Silver Premium (Self-Only)

Based on state + age

Employee Out-of-Pocket (After ICHRA)

Monthly gap or surplus

ACA Affordability Check

ICHRA vs. Group Plan vs. QSEHRA

Feature	ICHRA	Group Plan	QSEHRA
Employer size	Any size	Any size	<50 employees only
Max allowance	No cap	N/A (premium-based)	$6,450/ind, $13,100/fam (2026)
Employee classes	11 classes allowed	Same plan for all	Same for all (age/family only)
Employee choice	Any ACA plan	Employer-chosen plan	Any ACA plan
Tax treatment	Tax-free reimbursement	Pre-tax premium	Tax-free reimbursement
ACA compliance	Satisfies employer mandate	Satisfies employer mandate	Small employer only
Cost predictability	100% fixed budget	Annual renewal risk	100% fixed budget
Admin complexity	Moderate (TPA needed)	Low-moderate	Low

Per-Employee Annual Cost Comparison

What is an ICHRA?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is an employer-funded, tax-advantaged benefit that reimburses employees for individual health coverage premiums and medical expenses. Established by IRS Final Rules published June 20, 2019 (84 FR 28888), ICHRAs allow employers of any size to provide a defined contribution toward employees' individual market coverage.

ICHRA Allowance Calculation:
Base allowance is the monthly amount you set. If age variation is enabled, allowances are linearly interpolated from youngest (age 21) to oldest (age 64) using the formula: allowance = young + (age - 21) / (43) * (old - young). The IRS permits up to a 3:1 oldest-to-youngest ratio, mirroring the ACA age curve.

Family Size Multipliers:
When family variation is enabled, the base allowance is multiplied by the selected factor for each tier. The calculator uses a blended rate assuming 60% single / 25% EE+spouse / 15% family unless overridden by class data.

Marketplace Premium Estimates:
The self-only premium is the state's 2026 average lowest-cost silver premium for a 40-year-old (KFF analysis of HealthCare.gov and state marketplace data), scaled to the average age you enter with the CMS federal default age curve, or the state's own curve in Massachusetts and Utah; New York and Vermont do not rate by age. Premiums vary by county, so an employee's actual lowest-cost silver plan can differ from the state average.

ACA Affordability Test:
Under 26 CFR 1.36B-2(c)(5), an ICHRA is "affordable" if the premium for the lowest-cost silver plan (self-only) in the employee's rating area, minus the monthly ICHRA allowance, is no more than the required contribution percentage of household income divided by 12: 9.96% for 2026 (IRS Rev. Proc. 2025-25). If unaffordable, employees may opt out and claim premium tax credits instead.

Group Plan Comparison:
Group plan costs use the entered PEPM multiplied by employer contribution percentage. ICHRA costs are fully predictable since the employer sets a fixed allowance. Group premiums are subject to annual renewal increases (KFF: the average family premium rose 6% in 2025). The 3-year projection assumes 8% a year for the group plan and 3% a year for the ICHRA allowance; these are modeling assumptions, not forecasts.

Data Sources: IRS Final Rules on ICHRAs (84 FR 28888, 2019); IRS Rev. Proc. 2025-25 (2026 required contribution percentage); KFF Average Marketplace Premiums by Metal Tier, 2026; CMS federal default and state age curves; KFF 2025 Employer Health Benefits Survey; AHRQ MEPS-IC 2025 state premiums.

Built on IRS Rules and Real Marketplace Data

This calculator uses official regulatory guidance and current marketplace pricing to model ICHRA costs accurately.

IRS Final Rules (2019)

84 FR 28888 — the foundational regulation establishing ICHRAs, employee class rules, and affordability requirements

KFF Marketplace Data

2026 average lowest-cost and benchmark silver premiums by state for a 40-year-old (KFF analysis of HealthCare.gov and state marketplace data)

IRS Rev. Proc. 2025-25

2026 required contribution percentage (9.96%) used in the ICHRA affordability test

KFF Employer Survey

2025 national benchmarks on group premiums, employer contributions, and plan design trends

Want Help Designing Your ICHRA?

Get a personalized ICHRA implementation plan with employee class strategy, allowance optimization, and ACA compliance review — from a benefits advisor.

Getting Started — Your Next Steps

Download or print your results for reference
Review the numbers with your accountant or financial advisor
Identify which option aligns best with your budget and employee needs
Get real quotes to compare against these estimates
Plan for open enrollment timing if you decide to make a change

Common Questions

Is this ichra calculator really free?

Yes, completely free with no strings attached. You do not need to create an account, provide an email address, or speak with anyone. Calculations run in your browser. Benefitra collects information when you submit a form or request a report, and this tool may save what you enter as you work. Analytics cookies are used only with your consent. See our Privacy Policy.

How accurate are these estimates?

The marketplace figures are published 2026 state averages and the affordability test uses the IRS percentage for 2026, but the cost comparison depends on your inputs and simple assumptions, so treat it as a directional estimate. Your actual costs will depend on your specific situation, location, and the providers you work with. We recommend using these numbers as a starting point for getting real quotes.

What should I do with these results?

Use them as a baseline for informed conversations with brokers, PEOs, or insurance providers. Having these numbers before you talk to a salesperson puts you in a much stronger negotiating position and helps you evaluate whether the proposals you receive are competitive.

State figures used by this ICHRA calculator

Marketplace figures are the state averages for a 40-year-old in 2026, before subsidies: the lowest-cost silver plan, which the ICHRA affordability test uses, and the second-lowest-cost silver (benchmark) plan (KFF, Average Marketplace Premiums by Metal Tier, 2026; KFF analysis of HealthCare.gov and state marketplace data, weighted by county plan selections). The calculator scales the lowest-cost silver premium to the average age you enter using the CMS federal default age curve (the state curves in Massachusetts and Utah; New York and Vermont do not vary premiums by age). Employer figures are the 2025 average total premium per enrolled employee at private-sector employers that offer coverage, employer and employee shares combined, shown per month (AHRQ MEPS-IC 2025, via KFF State Health Facts). All are state averages: premiums vary by county and by employer, so use your own quotes for decisions.

Pick a state above, or link straight to one with ?state=TX (any two-letter code).

Small-group size: California, Colorado, New York and Vermont define a small employer as 1 to 100 employees, instead of the federal default of 1 to 50 (CMS state rating table).

Show all 50 states

State	Lowest-cost silver, age 40 (2026)	Benchmark silver, age 40 (2026)	Employer single premium (2025)	Employer family premium (2025)
Alabama	$632/mo	$645/mo	$681/mo	$1,963/mo
Alaska	$1,019/mo	$1,032/mo	$886/mo	$2,511/mo
Arizona	$519/mo	$532/mo	$644/mo	$1,929/mo
Arkansas	$753/mo	$774/mo	$650/mo	$1,913/mo
California	$522/mo	$570/mo	$764/mo	$2,255/mo
Colorado	$535/mo	$557/mo	$735/mo	$2,088/mo
Connecticut	$757/mo	$870/mo	$832/mo	$2,392/mo
Delaware	$685/mo	$691/mo	$788/mo	$2,133/mo
Florida	$674/mo	$683/mo	$743/mo	$2,116/mo
Georgia	$604/mo	$615/mo	$742/mo	$2,203/mo
Hawaii	$533/mo	$541/mo	$690/mo	$1,967/mo
Idaho	$484/mo	$490/mo	$731/mo	$2,163/mo
Illinois	$635/mo	$646/mo	$810/mo	$2,354/mo
Indiana	$473/mo	$474/mo	$696/mo	$1,958/mo
Iowa	$497/mo	$501/mo	$718/mo	$2,098/mo
Kansas	$650/mo	$670/mo	$721/mo	$2,124/mo
Kentucky	$577/mo	$590/mo	$745/mo	$2,043/mo
Louisiana	$637/mo	$646/mo	$734/mo	$2,137/mo
Maine	$696/mo	$709/mo	$817/mo	$2,176/mo
Maryland	$403/mo	$414/mo	$730/mo	$2,060/mo
Massachusetts	$476/mo	$494/mo	$870/mo	$2,468/mo
Michigan	$513/mo	$523/mo	$686/mo	$1,983/mo
Minnesota	$437/mo	$448/mo	$716/mo	$2,162/mo
Mississippi	$661/mo	$662/mo	$634/mo	$1,828/mo
Missouri	$604/mo	$605/mo	$674/mo	$2,127/mo
Montana	$681/mo	$692/mo	$742/mo	$1,832/mo
Nebraska	$710/mo	$710/mo	$742/mo	$2,236/mo
Nevada	$495/mo	$497/mo	$685/mo	$1,923/mo
New Hampshire	$394/mo	$401/mo	$792/mo	$2,347/mo
New Jersey	$538/mo	$545/mo	$812/mo	$2,472/mo
New Mexico	$565/mo	$623/mo	$787/mo	$2,207/mo
New York	$788/mo	$817/mo	$909/mo	$2,479/mo
North Carolina	$633/mo	$638/mo	$718/mo	$2,109/mo
North Dakota	$553/mo	$570/mo	$776/mo	$2,075/mo
Ohio	$513/mo	$513/mo	$734/mo	$2,055/mo
Oklahoma	$602/mo	$604/mo	$677/mo	$2,040/mo
Oregon	$535/mo	$543/mo	$769/mo	$2,265/mo
Pennsylvania	$555/mo	$572/mo	$785/mo	$2,219/mo
Rhode Island	$488/mo	$506/mo	$782/mo	$2,280/mo
South Carolina	$564/mo	$564/mo	$713/mo	$2,087/mo
South Dakota	$642/mo	$655/mo	$749/mo	$2,176/mo
Tennessee	$707/mo	$711/mo	$722/mo	$2,094/mo
Texas	$651/mo	$661/mo	$712/mo	$2,088/mo
Utah	$614/mo	$640/mo	$704/mo	$2,094/mo
Vermont	$1,289/mo	$1,299/mo	$834/mo	$2,121/mo
Virginia	$455/mo	$455/mo	$748/mo	$2,271/mo
Washington	$590/mo	$612/mo	$726/mo	$2,302/mo
West Virginia	$1,036/mo	$1,073/mo	$740/mo	$2,174/mo
Wisconsin	$602/mo	$611/mo	$796/mo	$2,276/mo
Wyoming	$1,089/mo	$1,090/mo	$750/mo	$2,257/mo
United States	$611/mo	$625/mo	$752/mo	$2,190/mo

State figures used by the ICHRA calculator

The ICHRA calculator starts from the per-state figures below. Estimates are shown as estimates and are not quotes; confirm details with your carrier, plan administrator or state insurance department.

Alabama figures for the ICHRA calculator
Alaska figures for the ICHRA calculator
Arizona figures for the ICHRA calculator
Arkansas figures for the ICHRA calculator
California figures for the ICHRA calculator
Colorado figures for the ICHRA calculator
Connecticut figures for the ICHRA calculator
Delaware figures for the ICHRA calculator
Florida figures for the ICHRA calculator
Georgia figures for the ICHRA calculator
Hawaii figures for the ICHRA calculator
Idaho figures for the ICHRA calculator
Illinois figures for the ICHRA calculator
Indiana figures for the ICHRA calculator
Iowa figures for the ICHRA calculator
Kansas figures for the ICHRA calculator
Kentucky figures for the ICHRA calculator
Louisiana figures for the ICHRA calculator
Maine figures for the ICHRA calculator
Maryland figures for the ICHRA calculator
Massachusetts figures for the ICHRA calculator
Michigan figures for the ICHRA calculator
Minnesota figures for the ICHRA calculator
Mississippi figures for the ICHRA calculator
Missouri figures for the ICHRA calculator
Montana figures for the ICHRA calculator
Nebraska figures for the ICHRA calculator
Nevada figures for the ICHRA calculator
New Hampshire figures for the ICHRA calculator
New Jersey figures for the ICHRA calculator
New Mexico figures for the ICHRA calculator
New York figures for the ICHRA calculator
North Carolina figures for the ICHRA calculator
North Dakota figures for the ICHRA calculator
Ohio figures for the ICHRA calculator
Oklahoma figures for the ICHRA calculator
Oregon figures for the ICHRA calculator
Pennsylvania figures for the ICHRA calculator
Rhode Island figures for the ICHRA calculator
South Carolina figures for the ICHRA calculator
South Dakota figures for the ICHRA calculator
Tennessee figures for the ICHRA calculator
Texas figures for the ICHRA calculator
Utah figures for the ICHRA calculator
Vermont figures for the ICHRA calculator
Virginia figures for the ICHRA calculator
Washington figures for the ICHRA calculator
West Virginia figures for the ICHRA calculator
Wisconsin figures for the ICHRA calculator
Wyoming figures for the ICHRA calculator