Plan the next ICHRA renewal early

Two calendars need attention

The HRA plan year and individual insurance coverage year may not be identical. Most individual-market coverage renews on a calendar-year basis, while an employer’s HRA can have a different plan year. Coordinate notices, premium updates, employee enrollment, and contribution decisions accordingly.

Review before setting next year’s budget

• Update employee counts, locations, eligibility, and dependent assumptions.
• Compare next-year local premium and network information when available.
• Reassess employer affordability methodology and the applicable percentage.
• Review participation, reimbursements, unused amounts, and fee changes.
• Check whether the existing class structure still fits and remains compliant.

Give employees a fresh comparison

An automatically renewed individual policy may not preserve the same premium, network, or prescription coverage. Employees need time to review options and understand any contribution change. Provide current notices and explain how to update coverage substantiation.

Evaluate the service, not just the price

Assess enrollment assistance, response times, reimbursement errors, reporting, and data portability. If changing administrators, identify record-transfer and continuity requirements before making commitments. Low administration fees are not a substitute for dependable execution.

A practical planning cadence

As a planning recommendation, begin the internal review several months before the desired decision date, then establish actual deadlines from notice rules, enrollment windows, vendor requirements, and the employer’s circumstances. This planning window is not a replacement for legal deadlines.

Keep a decision record

Record contribution decisions, methodology, source premium data, communications, and assigned responsibilities. A clear record makes the next renewal more efficient and helps explain why the design was chosen.