Individual Coverage Health Reimbursement Arrangement (ICHRA) adoption is growing —
ICHRAs replace a one-size-fits-all group plan with a defined contribution model, empowering employees to purchase coverage that fits their
Many brokers still view ICHRAs as a fallback. The reason: Many are unaware of how to solve the complexity that comes with ICHRAs versus the ease of traditional group plans. With a traditional group plan, a carrier manages enrollment, billing and servicing. With an ICHRA, the administration can expand
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Reliable partnerships with ICHRA administrators and payment managers is critical to ensuring a successful offering. Administrators that successfully manage the process for employers help maximize the value of the cost savings and flexibility ICHRAs offer. And, when it comes to ICHRA premium payments, solving payment friction isn't a bonus feature. It's a requirement.
Clarity, not confusion
Most agree, the ICHRA payment experience is complicated.
For HR teams, management requires a continuous cycle of documentation, processing and additional verification to maintain the tax-free status of the benefit.
Lack of transparency is another issue. Employers need transparency of payment timeliness, accuracy, and a real-time understanding of payments by employer and employee. Without this visibility, employers and employees are left guessing. This uncertainty leads to potentially missed deadlines, compliance risk and tension.
For employees, needing to pay premiums upfront and wait for reimbursement creates a financial strain, uncertainty and frustration.
To simplify ICHRA premium funding and payment management — and deliver an ICHRA experience similar to a group plan — an automated, reliable and transparent payment solution is key.
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Three necessities for ICHRA payment infrastructure
Automation
By integrating with payroll and automating disbursements directly to carriers, employers improve accuracy, reduce risk and enhance the employee experience. No more time-consuming administrative tasks, late payments, or missed coverage windows. Ultimately, reimbursements are processed faster with fewer errors, helping brokers and employers spend less time fixing issues and more time advising.
Consolidated payments
Instead of an employer managing dozens of individual payments, a streamlined solution consolidates premium payments across all employees into a single workflow. This simplifies funding and reconciliation for employers while ensuring accurate, timely disbursements.
Visibility
Transparent dashboards help verify that premiums are being paid on time, eliminate guesswork and support audit-readiness. Real-time tracking and reporting provides employers with peace of mind and confidence.
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Taking ICHRAs from back-up plan to strategic advantage
Solving payment friction does more than simplify operations. It builds confidence, strengthens employer trust and satisfies employees. With an accurate, automated and transparent payment infrastructure in place, ICHRAs shift from a fall-back option to a valuable option to consider.
It's about removing roadblocks. Simplify the premium payment process and make ICHRAs work with the ease of a traditional plan while gaining the benefits of a modern, flexible and sustainable benefits option for employers and their employees.
