Where to Purchase ICHRA With 1095 Reporting Support - 2026

Switching to an Individual Coverage HRA (ICHRA) is a fantastic move for businesses wanting flexible, cost effective health benefits. But with that flexibility comes a web of compliance rules, especially the yearly headache of IRS reporting. If you’re trying to figure out where to purchase ichra with 1095 reporting support, the answer lies with specialized software platforms and full-service administration vendors. Getting this choice wrong can lead to hefty penalties and frustrated employees.

This guide breaks down everything you need to know. If you’re new to ICHRA basics, start with what is an ICHRA health plan. We’ll walk through the essential compliance tasks, explain the different types of ICHRA providers, and give you a clear checklist for making the right choice. By the end, you’ll know exactly what to look for in an ICHRA partner to keep your benefits running smoothly and your business compliant.

The Big Decision: ICHRA Software vs. a Full Service Vendor

Before diving into the nitty gritty of IRS forms, your first decision is about the type of help you need. If you’re still deciding between options, see ICHRA vs. group plan for a quick comparison. This choice will define who handles the complex tasks we’re about to discuss.

• ICHRA Software: This is the do it yourself (DIY) route. A software platform gives you the tools to set up your ICHRA, define employee classes, and manage reimbursements. It’s often more affordable and gives you direct control. This option works well for small teams with some HR experience who are comfortable managing compliance themselves.
• Full Service Vendor: This is the “done for you” approach. A full service vendor combines technology with human expertise. They guide you through plan design, manage the paperwork, and often provide direct support to your employees for choosing insurance plans. This hands on help is ideal for businesses without a dedicated HR person or for larger companies that want to outsource the administrative burden.

While software might provide templates and reports, a full service vendor is more likely to handle IRS filings completely on your behalf. Platforms like SimplyHRA blend these models, offering user friendly software backed by powerful compliance automation and expert support, giving you the best of both worlds.

Unpacking ICHRA Compliance and Reporting Requirements

Offering an ICHRA means you’re sponsoring a health plan, which brings a set of responsibilities under the Affordable Care Act (ACA). Finding where to purchase ichra with 1095 reporting support is critical because these tasks are non negotiable.

Understanding ACA Compliance Management

ACA compliance is the process of following the Affordable Care Act (ACA) rules. For Applicable Large Employers (ALEs), meaning companies with 50 or more full time equivalent employees, this involves the employer mandate. The mandate requires ALEs to offer affordable, minimum essential coverage to at least 95% of their full-time workforce under one of the ACA affordability safe harbors.

Failing to do so can trigger massive penalties. For instance, offering coverage that isn’t considered “affordable” (meaning the employee’s share of the premium exceeds a certain percentage of their household income) can lead to fines of over $5,000 per affected employee per year. ACA compliance management means tracking eligibility, calculating affordability, and filing the right paperwork to prove you’ve met your obligations.

The Core of ACA Reporting: Forms 1095 B and 1095 C

Forms 1095 B and 1095 C are the primary documents used to report health coverage information to the IRS and your employees. They are essentially the W 2 of health insurance.

• Form 1095 B Filing Support: This form is for small employers (fewer than 50 full time employees) who offer a self funded plan like an ICHRA. It confirms which employees (and their dependents) had health coverage and for which months. Failing to file can result in penalties of $50 to $250 per form, depending on how late you are.
• Form 1095 C Filing Support: This form is for all Applicable Large Employers (ALEs). An ALE must file a 1095 C for every employee who was full time for at least one month of the year. This form is more detailed, containing codes that describe the type of health coverage offered and its affordability. Errors or missed filings can cost up to $560 per employee, combining penalties for not filing with the IRS and not providing a copy to the employee.

When you’re searching where to purchase ichra with 1095 reporting support, this is the central service you’re looking for. A good provider will generate these forms, populate them with the correct codes, and often e file them for you.

Don’t Forget the Cover Sheet: Form 1094 Transmittal

Think of Form 1094 as the cover letter for your 1095 forms. It’s a summary document you send to the IRS along with your batch of 1095s. Form 1094 C (for ALEs) or 1094 B (for small employers) reports totals, such as how many 1095 forms you’re submitting, and confirms that you’ve complied with the 95% offer rule. Transmittal support from your ICHRA provider ensures this crucial summary is accurate, preventing your entire filing from being flagged for review.

Other Key Filings: PCORI, W 2, and ERISA

Beyond the 1095 series, a few other filings are on the compliance checklist.

• PCORI Fee (Form 720) Support: The Patient Centered Outcomes Research Institute (PCORI) fee is a small tax on self insured health plans, including ICHRAs. It’s paid annually using Form 720 by July 31. The fee itself is minor (a few dollars per covered person), but penalties for not filing can be steep. A good ICHRA partner will remind you of the deadline and help you calculate the amount due.
• W 2 Reporting Support: Currently, the IRS does not require employers to report the value of ICHRA contributions on employee W 2 forms. This is a nice bonus that simplifies year end paperwork. However, regulations can change, and a compliance focused partner will keep you updated on any new requirements.
• ERISA Form 5500 Support: The Employee Retirement Income Security Act (ERISA) governs most private sector health plans. Plans with 100 or more participants at the start of the year must file a Form 5500 annually. Most small businesses with an ICHRA will fall under this threshold and be exempt. However, if you’re a larger company, you’ll need a provider who can help prepare and file this detailed report.

Key Features to Look for in an ICHRA Provider

Now that you understand the compliance landscape, you can evaluate providers more effectively. The best place where to purchase ichra with 1095 reporting support will offer more than just basic administration.

Critical Data: Lowest Cost Silver Plan (LCSP) Support

To determine if your ICHRA offer is “affordable” under ACA rules, you need to know the premium for the lowest cost silver plan available to each employee on the public marketplace. This premium varies by age and location. Manually looking this up for every employee is a nightmare.

An essential feature is automated LCSP data support. The platform should automatically pull this data based on employee details. This allows the system to perform affordability calculations for you, which is critical for completing Form 1095 C correctly and ensuring you meet ACA safe harbors.

Defining Roles: Vendor vs. Employer Responsibility for Filings

This is perhaps the most important question to ask a potential provider: Who is ultimately responsible for what?

Legally, you, the employer, are the plan sponsor and are accountable to the IRS. However, your service agreement should clearly state which filing duties the vendor will perform on your behalf. A software only platform might give you a report and expect you to do the filing. A full service vendor will typically manage the entire process. Be sure to get this in writing so there are no surprises come tax time.

Your Checklist: ICHRA Vendor Selection Criteria

When you’re ready to choose where to purchase ichra with 1095 reporting support, use this ICHRA vendor selection checklist to compare your options:

• Compliance and Filing Guarantees: Does the provider explicitly handle Forms 1095 B/C, 1094, and PCORI fee calculations? Do they offer audit support?
• Employee Support: How do they help your employees choose and enroll in a health plan? Do they offer licensed brokers or robust educational tools? Data shows employees who get curated plan recommendations are twice as likely to successfully enroll.
• Payroll and HRIS Integrations: Can the platform sync with your existing systems (like Gusto, Rippling, or ADP)? This automates reimbursements and reduces manual data entry (see how to choose an ICHRA that integrates to payroll).
• Reimbursement Process: How easy is it for employees to submit expenses and get paid? Look for features like direct deposit, automated approvals, and optional pre funded debit cards to reduce out of pocket costs for your team.
• Transparent Pricing: Is the cost a simple per employee per month fee, or are there hidden charges for setup, filing, or support?

Finding Where to Purchase ICHRA with 1095 Reporting Support

Choosing an ICHRA is a strategic decision that gives your employees personalized health benefits while providing your business with predictable costs. But the administrative and compliance work can be daunting. The key is to find a partner, not just a piece of software.

A modern platform like SimplyHRA is built to solve this exact problem. It combines intuitive software for easy plan setup with deep automation for all the complex reporting and compliance tasks. With features like payroll triggered reimbursements and integrated broker support, it simplifies the entire process for you and your employees. If you want to offload the compliance burden and focus on running your business, it’s the ideal place where to purchase ichra with 1095 reporting support.

Ready to see how simple ICHRA can be? Schedule a free consultation with the SimplyHRA team today.

Frequently Asked Questions

What is 1095 reporting for an ICHRA?

1095 reporting is the annual process of filing forms with the IRS (and providing copies to employees) that detail the health coverage you offered. For an ICHRA, this typically involves Form 1095 B for small employers or Form 1095 C for larger employers (ALEs).

Do all businesses with an ICHRA need 1095 reporting support?

Yes. Any business sponsoring an ICHRA has an ACA reporting obligation. While the specific form (1095 B vs. 1095 C) depends on your company size, the requirement to file is universal. This makes finding where to purchase ichra with 1095 reporting support a vital step for any employer.

How much does an ICHRA with 1095 reporting support cost?

Pricing varies. Some providers charge a base platform fee plus a per employee per month (PEPM) fee, while others have all inclusive pricing. For example, SimplyHRA offers a single plan at $29 PEPM that includes compliance and reporting support with no hidden fees.

Can I manage ICHRA compliance myself?

While it is technically possible, it is not recommended unless you have deep expertise in benefits compliance. The rules are complex, the deadlines are strict, and the penalties for mistakes are significant. Using a dedicated ICHRA administrator is a much safer and more efficient approach.

What’s the difference between Form 1095 B and 1095 C for an ICHRA?

Form 1095 B is a simpler form used by small employers (under 50 full time employees) to report that an employee had qualifying health coverage. Form 1095 C is a more detailed form used by large employers (50 or more full time employees) to report information about the coverage that was offered, including its affordability.

Does SimplyHRA provide 1095 reporting support?

Yes. SimplyHRA provides comprehensive support for ACA compliance, including the generation and management of Forms 1095 B, 1095 C, and the 1094 transmittal, making it a great solution if you’re looking where to purchase ichra with 1095 reporting support.