Short answer: At least 90 calendar days before every plan year. A worker who becomes eligible later gets it no later than the day the HRA can first take effect for them, and a business first set up fewer than 120 days before its first HRA plan year can give it by the effective date for that first year only.
The notice is due every year, not just the first year. For a plan year starting April 1, 2027, deliver it by January 1, 2027.
Under 26 CFR 54.9802-4(c)(6) the notice must describe the ICHRA (CHOICE Arrangement) terms, including:
- the maximum dollar amount, including the self-only amount, and any proration for a partial year;
- which dependents are eligible, and a statement that this is an individual coverage HRA;
- the right to opt out, and how accepting or opting out affects a premium tax credit;
- the requirement to have individual coverage or Medicare, and how coverage is substantiated;
- the special enrollment period, and that the employee must tell the Marketplace about the HRA.
The departments’ model notice may be used but is not required. Missing the 90-day deadline matters beyond the paperwork: the extra 60 days after the start date to buy individual coverage exists only where the HRA was not required to give the 90-day notice, so a late notice can leave employees without a clean enrollment window.