What's Happening?
A new study by SureCo reveals that 56% of brokers are now recommending Individual Coverage Health Reimbursement Arrangements (ICHRA) to employers as a viable option for providing health benefits. The study indicates a significant increase in the adoption
of ICHRA plans, with 37% of brokers moving at least one client to such plans in 2026, up from 15% in 2024. ICHRA allows employers to offer workers a stipend to purchase coverage on the marketplaces, providing greater choice and flexibility.
Why It's Important?
The growing adoption of ICHRA reflects a shift in how employers manage healthcare benefits amid rising costs. With family premiums for job-based insurance increasing by 6% in 2025, employers are seeking alternatives to manage expenses. ICHRA offers a cost-effective solution, with brokers reporting an average savings of 15.5% for clients who switched to these plans. This trend highlights the need for innovative approaches to healthcare benefits as employers navigate financial pressures and seek to provide competitive offerings.
What's Next?
As ICHRA gains traction, brokers and insurers will need to focus on educating employers and employees about the benefits and implementation of these plans. The success of ICHRA will depend on effective communication and support to ensure a smooth transition for organizations adopting this model. The continued rise in healthcare costs will likely drive further interest in ICHRA, prompting more employers to consider this option as part of their benefits strategy.
