Short answer: Generally yes. A private employer’s ICHRA is an ERISA group health plan, so it needs a written plan document and SPD and carries its own reporting, COBRA and fee duties, even though the individual policies employees buy are not part of the ERISA plan.
The ICHRA (CHOICE Arrangement) itself is the employer’s group health plan. The individual policies stay outside ERISA only if the conditions in 29 CFR 2510.3-1(l) are met, including that buying the policy is voluntary and the employer does not select or endorse any particular carrier or policy. Giving general information, such as pointing to HealthCare.gov, is allowed.
Duties to assign to someone in the administrator’s contract:
- Plan document and SPD for the HRA.
- Form 5500: a welfare plan with fewer than 100 participants at the start of the plan year that meets the funding conditions of 29 CFR 2520.104-20 is exempt from the annual report; that exemption does not remove the document and SPD duties.
- ACA reporting: a large employer reports the ICHRA offer on Forms 1094-C and 1095-C; a smaller employer generally uses Forms 1094-B and 1095-B for the HRA coverage.
- COBRA can apply to the HRA when the employer is subject to federal COBRA (generally 20 or more employees).
- PCORI fee on Form 720 for the HRA.