ICHRAs Explained: A Modern Solution for Employer Health Benefits

More Than an Insurance Broker — We’re Your Strategic Partner

At Fee Insurance Group, we view our role as more than helping you find coverage. We’re here to help employers design benefit strategies that strengthen their organizations, protect their people, and manage costs for the long term.

One option we’re seeing gain traction among forward-thinking employers is the Individual Coverage Health Reimbursement Arrangement (ICHRA) — a flexible benefits approach that’s reshaping how companies provide health insurance.

What Is an ICHRA?

An ICHRA allows employers to reimburse employees, tax-free, for health insurance they purchase on their own — either through the Marketplace or directly from carriers. It’s a compliant, modern alternative to traditional group health plans.

Employers set a defined contribution amount, and employees select the plan that best fits their personal needs and family circumstances. The arrangement is available to businesses of all sizes, with no minimum or maximum contribution requirement.

Why Employers Are Paying Attention

As healthcare costs continue to rise, ICHRAs are gaining appeal for their ability to balance financial control with employee choice.

Here’s why employers are exploring this model:

  • Predictable costs: Set an annual contribution that fits your budget.

  • Reduced risk: Avoid unpredictable group renewals and rate swings.

  • Employee empowerment: Allow your team to pick coverage that works best for them.

  • Administrative flexibility: ICHRAs integrate easily with payroll and compliance systems.

Rates alone are never the only factor in choosing a benefits strategy. The real value lies in flexibility, control, and employee satisfaction — and ICHRAs deliver on all three.

Addressing Common Concerns

It’s understandable that rising individual market rates in some states may give employers pause. But the ICHRA train has left the station, and there’s no sign of it slowing down.

The long-term opportunity is simply too significant. As technology platforms, advisor support, and employee awareness continue to improve, ICHRAs are becoming a cornerstone of modern benefit design.

Is an ICHRA Right for Your Organization?

An ICHRA may be a fit if your business:

  • Has employees in multiple locations or states

  • Wants to manage benefit costs more predictably

  • Employs a mix of full-time, part-time, or seasonal workers

  • Is exploring alternatives to traditional group health plans

Our advisors can help you evaluate whether an ICHRA aligns with your workforce, budget, and goals — and guide you through compliance, plan design, and employee rollout.

Forward, Together.

At Fee Insurance Group, we partner with employers to bring innovative benefit solutions that support people and performance.

Ready to explore how an ICHRA could fit your business?
Contact our Employee Benefits team to start the the conversation.

Lori Webb