Who’s a Strong Fit for ICHRA?
There are plenty of companies that could benefit from ICHRA, but some are especially clear wins—the open-and-shut cases. These are the organizations where ICHRA can make an immediate, positive impact:
- The Starters – Companies not currently offering benefits are a great fit for ICHRA. This new model gives them an easy entry point: they can allocate funding, open up options for employees, and avoid the heavy administrative burden of group coverage.
- The Renewal Sticker Shocked – Groups facing unsustainable renewals. Year after year, fully insured small groups are hit with steep increases, and even PEO or level-funded plans can see spikes. For employers who can’t keep their group plan afloat, ICHRA lets them stay competitive on benefits while staying within budget.
- The Micros – Companies with fewer than 10 employees are almost always best served by an ICHRA. This segment often has limited group options, tends to be a bit budgetary constrained as it’s early in their company’s lifecycle, and without internal HR support, traditional plan administration can be more trouble than it’s worth. ICHRA simplifies the process while giving employees more choice. Micros have been historically tough for agents to process but with StretchDollar’s ICHRA, the employers can self serve in less than 10 minutes (with technical support nothing but a live chat away).
Who’s Probably a Poor Fit for ICHRA?
Not every employer is a match. Here are a few situations where ICHRA might not be the best path:
- The Happy Renewal Crew – If a company likes their current group plan and just received a manageable renewal, it often makes sense to stay put. Switching brings unavoidable disruption, so unless they’re interested in exploring alternatives, it’s usually best to leave them as-is.
- The “Money Is No Object” Group – Some employers want to offer the richest possible benefits, regardless of cost. High-end group plans can sometimes outpace what’s available on the individual market—especially for older workforces. In those cases, group coverage may be the more comfortable option.
- The Skeptics – Some administrators are wary of leaving employees to choose individual coverage, even with broker support. If leadership isn’t confident their team can navigate the process, they’ll likely feel more comfortable sticking with group coverage.
The four steps to tell how well an ICHRA is going to fit your lead
Odds are you’ll be able to tell from a glance who you should prioritize ICHRA to in your pitch. Typically before your call you’ll be able to size up the following about a prospect:
Step 1: Company size
- <10 employees → 🎯 The Micros → Strong ICHRA fit.
- 10+ employees → Go to Step 2.
Step 2: Does the company currently offer health benefits?
- No → 🎯 The Starters → Great fit for ICHRA potentially with group quotes but to know which to prioritize, go to Step 4.
- Yes → We need to know a bit more, go to Step 3.
Step 3: What does their renewal situation look like?
- 15%+ renewal increase → 🎯 The Sticker Shocked → Strong ICHRA fit.
- Manageable renewal / happy with group plan → ⚠️ The Happy Renewal Crew → Not a priority.
Now, there are things you won’t know until you’re actually talking options through with them. Here’s a last thing to keep an eye on while getting to know your prospect and what they might be looking for:
Step 4: Employer budget & philosophy
- Wants to control costs / needs flexibility → 🎯 Likely ICHRA fit.
- “Money is no object” / prefers richest benefits → ⚠️ Money Is No Object Group → Not a fit.
- Doesn’t trust employees to choose coverage → ⚠️ The Skeptics → Not a fit.
In conclusion…
ICHRA isn’t for every employer — but when it’s the right fit, it can be a game-changer.
For agents, embracing ICHRA isn’t just about protecting your current book from competitors. It’s about growth:
- Landing renewals that might otherwise churn,
- Finding a home for groups that are just starting their benefit journey, and
- Winning new business where traditional group coverage has never worked.
The bottom line: agents who add ICHRA to their toolkit won’t just keep pace — they’ll expand their opportunities.
