Individual Coverage Health Reimbursement Arrangement (ICHRA) adoption is growing — up nearly 34% in the past year for Applicable Large Employers (ALEs), and some cohorts showing 49% year-over-year growth. However, some brokers and employer groups remain hesitant to consider ICHRA offerings despite the predictable budgeting, cost savings and flexibility they offer.
ICHRAs replace a one-size-fits-all group plan with a defined contribution model, empowering employees to purchase coverage that fits their unique healthcare needs. Meanwhile, employers can control costs with a predictable benefits budget. With more than a 90% renewal rate, employers are adopting (and keeping) ICHRAs as a favorable alternative.
