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How this estimate works
For the group plan we multiply the average monthly premium by the share you pay, then by the number of employees and 12 months. For the ICHRA we multiply the allowance plus any administration fee by the number of employees and 12 months. The difference is shown per year and per employee. This does not include employees’ own costs, dependents or tax effects.
Frequently asked questions
What is an ICHRA, now also called a CHOICE Arrangement?
An ICHRA lets an employer give each employee a tax-free monthly allowance to buy their own individual health plan. In September 2026 CMS and the SBA began calling ICHRAs CHOICE Arrangements. It is a name change only; the rules are the same.
Is the ICHRA allowance tax-deductible?
Generally the employer can deduct the allowance as a business expense and it is tax-free to the employee when used for qualifying coverage, under the rules for these arrangements. Talk to your tax professional about your situation.
Why compare to a group plan?
The two work differently: with a group plan the employer picks one plan and pays part of the premium, while with an ICHRA each employee picks their own plan and the employer sets a predictable allowance. Comparing the annual employer cost is a useful first step.
This calculator gives a general estimate for education only. It is not a quote, an offer of coverage, or tax, legal or financial advice. Your actual results depend on your circumstances and the carriers and plans available to you.