ICHRAs for Part-Time Employees: What to Know

If you’re struggling to offer affordable health coverage to part-time or variable-hour employees, you’re not alone. According to a September 2025 report from the U.S. Bureau of Labor Statistics, only about one-quarter of part-time employees have access to employer-sponsored health benefits, and fewer than half of those employees actually enroll in coverage.

Rising premiums and rigid eligibility rules have made it harder than ever for companies to provide flexible coverage options. At the same time, the potential end of enhanced tax subsidies puts millions at risk of unaffordable coverage. Fortunately, that’s where the Individual Coverage Health Reimbursement Arrangement (ICHRA) can help.

Can I offer an ICHRA to part-time employees?

Yes! Based on federal guidelines, employers can offer an ICHRA to any eligible, defined group of employees (aka, classes). These classes are flexible, allowing employers to design benefits around their workforce structure.

Examples of ICHRA classes include:

• Full-time employees
• Part-time employees
• Seasonal or temporary workers
• Salaried vs. hourly employees
• Employees in specific states or locations

You can even combine classes—for example, offer part-time employees in Wisconsin an ICHRA while putting part-time staff at your Missouri headquarters on a group plan. You can also vary monthly allowances between classes, as long as everyone within a class is treated consistently.

Using carve-outs as an ICHRA strategy

Many employers use ICHRA carve-outs to expand coverage where traditional plans fall short. For instance, you might keep a group plan for full-time employees while carving out part-time workers into an ICHRA.

This flexibility is one of ICHRA’s biggest advantages. For employers, it means predictable budgets and ACA compliance. For employees, it means access to coverage that fits their lifestyle, location, and health needs.

Benefits of offering an ICHRA to part-time employees in 2025

With fewer part-time workers accessing employer-sponsored coverage—and the Enhanced Advanced Premium Tax Credits (eAPTCs) set to expire at year-end—the gap in benefits access is widening.

Offering an ICHRA helps bridge that gap by giving part-time employees access to hundreds of ACA-compliant individual plans and empowering them to choose coverage that fits their lives. It’s a modern, inclusive way to care for the people who keep your business moving forward.

Ready to see how ICHRA could work for your team? Schedule a 1:1 demo to learn more about how Zorro makes flexible, compliant benefits simple for every type of employee.