How Billing Works – ICHRA2

We believe billing should be clear and transparent. Below you'll find some of the most common. ICHRA health benefit billing questions and answers.

How are subscriptions timed?

Your health benefit will always be aligned to a calendar year, from January to December.

Your software subscription, will be based on the date you sign up with PeopleKeep. If you sign up mid-month on a monthly subscription, your subscription will renew on the 1st of each month.

See an example below:

If you sign up on the 15th of the month and choose a monthly plan, you will be charged a prorated amount, and your subscription will renew on the 1st of the month.

What am I charged when I sign up?

On your sign-up date you'll see the following charges whose amounts can vary based on monthly or annual subscriptions:

A one time signup fee - This fee covers the creation of your compliant legal plan documents and your company’s PeopleKeep account. It is never charged again.
A company base fee - This fee covers some of the fixed costs of providing our PeopleKeep platform. It does not vary based on the number of employees using the HRA benefit.
A three seat minimum fee - This fee covers the costs of supporting each employee’s access to the benefit. This includes generating individual plan documents, notification e-mails, and access to our live Customer Support personnel. A minimum of three seats will be added at sign up.
Additional eligible employee or software user per seat fee - A fee for each additional eligible employee, or software user (this could be a non-eligible admin, CPA, or business owner) that has been added to the account following the three seat requirement. If you do not add more than three seats, you will not see this fee until more than three seats are added.

Monthly Subscriptions

If signing up after the 1st of the month, a pro-rated company base fee and pro-rated seat fee of 3 (or more) will be billed after sign-up is complete.

What am I charged during my notification period?

A company base fee
An eligible employee/software user per seat fee for employees and administrators - a minimum of three seats is required.

What am I charged when my subscription renews?

A company base fee
An eligible employee/software user per seat fee for OPTED-IN employees, employees who are in their waiting or decision period and any administrators - a minimum of three seats are required.

Can I switch from a monthly to an annual plan or vice versa?

No, ICHRA does not have an annual billing option.

Which employees am I charged for?

You will be charged for all “software seats” purchased for all benefit-eligible employees added to the benefit that have OPTED IN. Adding a benefit-eligible employee adds a "seat" to your subscription. There is a 3-seat minimum fee whether or not you have added eligible employees to those seats.

As a reminder, ICHRA regulations require plan administrators to include all eligible employees. Failure to include all benefit-eligible employees can lead to significant fines. Below is some more detail on who is an eligible employee and who you will be charged for:

W-2 Full-Time—This employee type is always benefit-eligible. Remember, to stay compliant, you must offer this GCHRA benefit to ALL W-2 full-time employees participating in the group health insurance plan. While employees can choose not to use their allowance, they cannot opt out.
W-2 Part-Time—This employee type may be eligible, but it’s completely up to you to decide whether to extend GCHRA benefits to W-2 Part-Time employees. Upon designing the company's benefit plan for the year, you may choose to allow part-time employees to be eligible. You may not add W-2 Part-Time employees after the benefit effective date at any time during the health benefit year.
Ineligible Admins—You are charged a software seat for all admins, even if they are not eligible employees.

Who am I not charged for?

These employment statuses will not be charged a seat fee as long as they are not an Admin.

Owners-This status is not benefit eligible. This status is used for owners that are not eligible, such as an S-Corp owner, Sole proprietors, and Partners. Learn more about owner participation here.
Other - This status is not benefit eligible. This includes people like third party administrators, certified public accountants (CPAs) your organization hires in a consultative capacity.
W-2 Part-time- This status is not benefit eligible unless you decide to make Part-time employees benefit eligible.
Terminated - This status is not benefit eligible. This employee has left the business and will no longer be eligible for the benefit upon their termination date.

Why am I charged for ineligible admins?

An ineligible admin is provided the same services and support as an eligible employee, such as access to our Support team and email communications.

Do I receive a refund for unused seats?

No, once an employee is removed, you will have an available seat on your account to use for the remainder of your subscription (either that month or that year, depending on how you've chosen to pay).

If you do not plan to hire and you'd like to reduce your seat count, which will only take effect when your subscription next renews at the next billing cycle, you can do so by going to Manage People > Edit Seats then selecting the current employee seat number. A minimum of 3 seats is required.

Do I receive a refund if we cancel our PeopleKeep benefit mid-subscription?

No. You will not receive a refund for unused time if you cancel mid-subscription. If you believe you will likely end your HRA, we highly recommend speaking with us as far in advance as possible, so we can help you make the transition as smooth as possible.

Is there a charge if I cancel the account with a runout period?

Yes, your normal subscription fees will apply during this time. The account will officially close at the end of your runout period. Learn more about the runout period here