A 60 second read on what ICHRA is and why you should care

What Is ICHRA?

ICHRA stands for Individual Coverage Health Reimbursement Arrangement. Instead of offering a single group health plan, employers set a monthly budget and let employees purchase the individual health insurance that works best for them. Employers reimburse premiums (tax-free) up to that budget, giving employees choice while keeping costs predictable for the company.

How Does It Save Time and Money vs. Traditional Group Plans?

• Cost Control – Employers know exactly how much they’ll spend each month.
• Administrative Efficiency – Fewer forms, less compliance complexity, and simpler plan management.
• Employee Choice – Workers select a plan that fits their needs, leading to happier, more engaged employees.

Why Do I Need to Know About It Now?

Established in 2020, ICHRA is still relatively new, but it’s growing fast. Every day, employers are discovering a way to offer benefits without the cost or complexity of traditional group plans — and agents who don’t know ICHRA risk losing these clients to competitors.

Adoption is on the rise, and VC-backed startups are pouring tens of millions into making it easier for employees to shop for individual coverage. This isn’t a niche experiment anymore — it’s the next big shift in health benefits.

For agents, this is an opportunity to:

• Protect renewals that might otherwise churn.
• Win small and micro groups who previously had no good options.
• Position yourself as a forward-thinking, trusted advisor in a rapidly expanding market.

The clock is ticking — the companies that would benefit from ICHRA today won’t wait, and neither should you.

20-Second Elevator Pitch for Employers

"ICHRA lets your company set a tax-free budget for employee health benefits that your employees can use to choose the individual insurance plan that works best for them. It’s simple, flexible, and can save you both time and money compared to traditional group plans."