What is the ICHRA 90 day notice?

It's the written employee notice the ICHRA regulations require employers to provide at least 90 calendar days before each plan year begins, describing the ICHRA's terms, the right to opt out, and how the offer affects ACA premium tax credits.

What about new hires — do they get 90 days?

No. Employees who aren't eligible 90 days before the plan year, including new hires, must receive the notice no later than the date their ICHRA coverage may first take effect — so it belongs in onboarding.

What must the ICHRA notice include?

The ICHRA's terms and maximum amounts, dependent eligibility, the right to opt out, premium tax credit and affordability information, the rule that accepting the ICHRA forfeits the premium tax credit, the duty to notify the Exchange, and the available special enrollment period.

Does the notice have to go out every year?

Yes — the regulation requires it before the beginning of each plan year, not just the first.

What happens if the notice is late?

Missing or mistiming the notice is one of the most common ICHRA compliance errors and can jeopardize the arrangement's compliance — and it shortchanges employees who need that window to make subsidy decisions. Send it as soon as possible and work with your administrator or broker to correct course.

Is the ICHRA notice the same as the plan document?

No. The plan document legally establishes the ICHRA; the notice is the required employee communication about the offer. A compliant ICHRA needs both.

Guide

ICHRA notice requirements: what to send and when

Before an ICHRA plan year begins, eligible employees must receive a written notice explaining the benefit — and the timing is set by regulation, not convention. The standard deadline is at least 90 calendar days before the plan year starts, with a separate rule for new hires. This guide covers the 90-day rule, the new-hire exception, what the notice must contain, and the mistakes employers make, based on the ICHRA regulations at 45 CFR 146.123(c)(6).

By The ICHRA Broker · Licensed in New York, working with employers nationwide

Key facts

Standard deadline: ≥ 90 days before the plan year
New hires: By the date the ICHRA takes effect
Source: 45 CFR 146.123(c)(6)
Pairs with: The ICHRA plan document

What the ICHRA notice is

The ICHRA notice is a written notice employers must provide to each eligible employee, required under the regulations that created ICHRA (codified at 45 CFR 146.123). It tells employees what the arrangement offers, what it means for their ACA premium tax credit, and what they must do. It is not optional paperwork — providing the notice, on time, is one of the conditions of running a compliant ICHRA.

The 90-day rule

For employees already eligible, the notice must be provided at least 90 calendar days before the beginning of each plan year — per 45 CFR 146.123(c)(6)(i)(A). For a calendar-year plan starting January 1, that means the notice goes out by early October. The 90 days exist for the employee's benefit: the notice affects whether they can claim a premium tax credit, so they need time to compare the ICHRA offer against subsidized marketplace coverage before open enrollment decisions lock in.

And it recurs — the regulation requires the notice before each plan year, not just the first one.

New hires and the newly eligible

Employees who aren't eligible 90 days ahead — most commonly new hires, or anyone who first becomes eligible mid-year — fall under a different timing rule: they must receive the notice no later than the date their ICHRA coverage may first take effect (45 CFR 146.123(c)(6)(i)(B) and (C)). In practice, the notice belongs in onboarding, before the new hire's participation begins.

What the notice must include

These content requirements come from 45 CFR 146.123(c)(6)(ii). The subsidy-related items are the heart of it: the notice is how an employee learns whether taking the ICHRA or a marketplace subsidy leaves them better off.

A description of the ICHRA's terms — including the maximum reimbursement amounts and which dependents are eligible.
A statement of the employee's right to opt out of and waive future reimbursements.
Information about ACA premium tax credit availability and how the ICHRA's affordability affects it.
A statement that an employee who accepts the ICHRA cannot claim a premium tax credit.
A statement that the employee must notify the Exchange of the ICHRA offer if applying for advance premium tax credits.
Information about the special enrollment period available to employees offered an ICHRA.

The opt-out connection

The notice must tell employees they can opt out, and the underlying rule (45 CFR 146.123(c)(4)) requires that participants be permitted to opt out and waive future reimbursements once with respect to each plan year, generally in advance of the plan year. Opting out is how an employee whose ICHRA offer is unaffordable preserves eligibility for a premium tax credit — which is exactly why the notice must arrive early enough to act on.

Notice vs. plan document

Employers often conflate the two. The plan document is the legal instrument that establishes the ICHRA — the governing rulebook. The notice is the employee-facing communication the regulation requires on a deadline. You need both: the document to make the arrangement real, the notice to make the offer compliant. One does not substitute for the other.

Common notice mistakes

Sending the notice late — or treating the 90 days as a suggestion rather than the regulatory floor for existing employees.
Forgetting new hires: every employee who becomes eligible mid-year needs the notice by the time their coverage can take effect.
Treating the first year as the only year — the notice is due before each plan year.
Omitting the subsidy interaction language, which is central to what the notice exists to communicate.
Assuming the plan document covers it — the notice is a separate requirement.

Who prepares and sends it

In practice, employers don't draft this from scratch. ICHRA administrators and brokers generate the notice alongside the plan document during setup, populate the allowance and class details, and manage the annual send so the 90-day deadline isn't missed. What the employer owns is making sure it actually goes out — on time, to every eligible employee, every year.

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Frequently asked questions

At least 90 calendar days before the start of each plan year for employees already eligible — per 45 CFR 146.123(c)(6)(i)(A). For a January 1 plan year, that means early October.

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