PeopleKeep releases affordability calculator to aid employees who are offered an Individual Coverage HRA (ICHRA)

Online software makes it easy to determine if an ICHRA allowance is affordable and offers recommendations about whether an employee should opt in.

Salt Lake City, UT - November 17, 2020 - PeopleKeep, the leader in personalized benefits for small to medium-sized organizations, today announced the availability of an Individual Coverage Health Reimbursement Arrangement (ICHRA) affordability calculator to help employees determine whether they should opt in to an employer’s offer of an ICHRA benefit.


On the heels of successful ICHRA employer decision tool launch in September, 2020 and in response to customer requests, PeopleKeep developed the affordability calculator to help employees determine if their employer’s ICHRA allowance makes health insurance affordable and provide recommendations based on the employee’s current coverage status.

As employees evaluate insurance during open enrollment for 2021 health benefits, it’s important for them to understand if an ICHRA offered by their employer meets affordability requirements set by the IRS. This is particularly important for employees who are eligible for premium tax credits (PTC), because being offered an ICHRA that is considered affordable will cause them to lose the PTC regardless of whether they ultimately opt out of the ICHRA benefit.

While designed for employees, employers can also use the calculator to determine if an allowance they are offering to a specific employee is enough to meet IRS affordability requirements.

“PeopleKeep has always been committed to making health benefits simple and easy to manage. Our new ICHRA affordability calculator helps our customer’s employees make the best decisions for themselves and their families,” explains Victoria Hodgkins, CEO of PeopleKeep.

Using the affordability calculator, employees:

  • Can easily see if an employer’s ICHRA offer makes insurance affordable—specifically, if the ICHRA allowance plus 9.83% of their gross income allows them to purchase the lowest cost silver plan available in their location.
  • Instantly know if the offer will affect their eligibility for the premium tax credit.
  • Get recommendations about whether they should opt in or opt out of the ICHRA, based on the calculation results and their current health insurance coverage status.

The affordability calculator is freely available to the public on the PeopleKeep website.

While the calculator provides recommendations as to whether an employee should opt in or opt out of the ICHRA, it’s important to note PeopleKeep is not a licensed agent or broker and recommends employees with additional questions consult a licensed health insurance broker before making a final decision. Employees can do so at no additional cost to themselves.

About PeopleKeep

PeopleKeep helps small businesses care for their people through automated benefits. PeopleKeep personalized benefits automation software allows small organizations to reimburse employees tax-free for medical expenses. Today more than 15,000 people use PeopleKeep to participate in benefits that help them live better lives.

Contact: info@peoplekeep.com

Subscribe to press releases

Media contacts

Alex Flitton

Alex Flitton

Email: pr@peoplekeep.com

SUBMIT A MEDIA INQUIRY