I get it, change is risky, and no one wants to bet their employees’ health benefits on a passing trend. But here’s the thing…HRAs have been around for decades, and ICHRAs aren’t an experiment. They’re an evolution.

Think about how 401(k)s replaced pensions. At first, people were skeptical. Now, it’s the standard. ICHRAs are following the same path, shifting from employer-controlled benefits to employee choice and portability. And the momentum is real: In just a few short years, hundreds of thousands of employees have been covered by ICHRAs, and the market is quickly growing.

Plus, let’s talk about policy. ICHRAs were designed under bipartisan rule-making. They don’t depend on a single administration’s agenda, and the regulatory framework is built to last. Major players… insurance carriers, tech firms, and benefits platforms are investing heavily in making them work because they see the long-term potential.

If ICHRAs were just a fad, why are so many employers, insurance carriers, and benefits firms putting their weight behind them? And more importantly, if group plans keep getting more expensive and restrictive, can you afford to wait and see?

Great question, because while ICHRAs aren’t for everyone, they are an absolute game-changer for certain types of businesses. Here’s where they really shine:

• Small to Mid-Sized Businesses (2-250 Employees).

• Employers who can’t afford traditional group plans or face unstable renewal hikes.

• Companies that struggle with participation requirements in group plans

• Business owners who want a benefits strategy that grows with them instead of being locked into rigid plan structures.

• Businesses with employees in multiple states, where traditional group plans create network and pricing challenges.

• Remote-first or hybrid companies that need flexibility in plan offerings.

• High-Turnover Industries (Hospitality, Retail, Home Health, Staffing Firms, etc.)

• Companies that have trouble meeting minimum participation rates for group plans.

• Employers looking for a lower-cost benefits option to offer part-time, seasonal, or variable-hour workers.

• Startups and Growing Companies.

• Employers that prefer a defined contribution approach, like a 401(k) for health benefits.

• Companies With a Diverse Workforce (Age, Income Levels, Health Needs)

• Organizations where employees have vastly different health care preferences—some may want high-deductible plans, while others need robust coverage.

• Businesses that recognize one-size-fits-all benefits don’t work anymore.
  

And here’s the best part, ICHRA isn’t just about cost savings. It’s about offering a modern, flexible, and competitive benefits strategy that meets employees where they are instead of forcing them into a one-size-fits-all plan.

Ask yourself… how does your current benefits approach fit the needs of your workforce? Because if flexibility, cost control, or multi-state coverage is a challenge, ICHRA might be exactly what you’ve been looking for.

That’s a fair concern, but let’s look at it from a total cost perspective, because the way employers spend on benefits today isn’t always efficient.

With a traditional group plan, you’re stuck with year-over-year premium increases, limited flexibility, and employees forced into a one-size-fits-all plan, whether it works for them or not. You’re paying the same amount per employee, regardless of their age, needs, or whether they even value the coverage. That’s a lot of wasted dollars.

An ICHRA shifts that dynamic. Instead of subsidizing a plan that doesn’t fit everyone, you’re setting a predictable, tax-efficient budget and giving employees the power to choose a plan that actually meets their needs.

In many cases, this results in cost savings or better value for the same spend, especially in markets where individual plan rates are more competitive than group plans.

Will it cost you more? That depends, on how you structure it, on your workforce demographics, and on whether you’re currently overpaying for coverage employees don’t fully use.

But let me ask, if you could control your benefits budget without locking into unpredictable renewal hikes, wouldn’t that be worth a closer look?

I totally get that concern. Shopping for individual insurance used to be a nightmare, too many choices, confusing terms, and no clear guidance. But here’s the thing… it’s not 2014 anymore. The tools available today make it easier than ever for employees to pick the right plan, and with the right support, they don’t have to navigate it alone.

Think about it—do your employees pick their own 401(k) investments without guidance? Probably not. But with the right tools and education, they make smart choices. The same goes for ICHRA. We’re not just handing them a check and saying, ‘Good luck.’ The right ICHRA setup comes with personalized plan-matching technology, concierge-level support, and structured guidance so they make informed decisions.

That’s a fair concern, and in some cases that it is certainly true. Tailored networks have been a challenge in the individual market, but they’re not the whole story. While many ACA plans do use such networks, the market has evolved. In some areas, PPO and the occasional national network options do exist, and carriers are expanding their footprints as competition grows.

But let me ask you this…do you know what options are actually available to your employees right now? Because I’ve seen cases where employers assumed they had no good options, only to find plans with more than adequate networks they didn’t realize existed.

And here’s another thought, how many of your employees really need unrestricted access to doctors nationwide? We often assume everyone needs a broad network, but when we use actual utilization data, it proves over and over that most employees stay within a local provider system.

Want to see how some employers are solving for this?