Build a complete cost picture
| Cost component | What to establish |
|---|---|
| Employer reimbursements | Eligible employees, allowance schedule, participation, expense rules, and carryover terms. |
| Administration | Billing basis, minimums, included services, and renewal terms. |
| Enrollment or advisory services | Who provides them and whether charges are separate or embedded. |
| Implementation | Plan setup, communication, payroll coordination, and any conversion charges. |
| Internal effort | Staff time for eligibility changes, reconciliations, questions, and oversight. |
Illustration: budgeted allowance is not a quote
Assume 40 employees each have a $500 monthly allowance for all 12 months. The maximum newly available allowance budget would be 40 × $500 × 12 = $240,000, before fees or other costs. If fewer employees participate or eligible reimbursements are lower, actual reimbursements may differ. Carryover and funding terms can change cash-flow needs.
This is an arithmetic illustration only. It does not establish affordability, a recommended contribution, likely participation, or Montridge pricing.
MONTRIDGE WEBINAR · 3:19Costs and comparisons
WATCH & EXPLORE · 3:19
Does ICHRA Really Save You Money? The Pros, Cons & Risk-Transfer Strategy
Examine why a defined contribution is not a guarantee of savings, and compare employee networks and costs as well as the employer budget.
Schedule an ICHRA Consultation ↗Put employee costs beside employer costs
An employer may spend less while employees spend more. Compare remaining premiums, deductibles, out-of-pocket exposure, and access to providers. Review subsidy effects as part of the employee picture rather than assuming the advertised individual premium is the employee’s final cost.
Request a written fee schedule
- Which services are included and which cost extra?
- Is billing based on eligible employees, enrolled employees, or another measure?
- Are there minimum fees, contract commitments, or termination costs?
- How are advisory fees and insurance compensation disclosed?
- What happens to unused balances and records when the arrangement ends?
A better comparison
Compare your current group strategy with one or more feasible ICHRA designs over the same time period. Show contribution exposure and expected cash flow separately. Then test sensitivity to participation changes and next-year premiums before concluding that a design is sustainable.
Sources & further reading
Research checked October 27, 2026. General education; no employer-specific legal or tax review is represented.