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The widespread adoption of the ICHRA model continues, and its popularity among a variety of industry segments can’t go unnoticed anymore. It’s more than just a trend now. Thousands of businesses are taking advantage of what an ICHRA offers. And employees are loving it, too.

However, not all companies have made the transition just yet. You could be one of them, holding out with your benefits and coverage options, as well. It could be that you need more clarity in understanding what the buzz is all about and how beneficial an ICHRA really is.

Today, we’ve cut through all the talk and compiled three proven reasons to consider implementing an ICHRA for 2022. Before you set up that traditional group health plan, explore why adopting an ICHRA just makes business sense.

1. Better for Businesses

The ICHRA model makes a lot of business sense. Company leaders and Human Resources Directors need to know that when transitioning away from the traditional group health insurance plan, the replacement offering is going to make sense to the company and the bottom line. ICHRAs are proving to do just that.


Businesses, like the employees who represent them, are inherently different. And to create the benefits employees need, companies need flexibility options. An ICHRA allows companies to structure their reimbursements based on needs, preferences, and budgets. This customization advantage means offering what participating employees want without wasteful spending on unused allowances. It means avoiding the one-size-fits-all group coverage model, as well, but still having the option to offer ICHRA reimbursements in conjunction with a group plan if necessary.


Implementing an ICHRA will allow your company to maintain control and reduce the risks associated with traditional group plan spending. Instead of taking full responsibility for your employees’ healthcare, let them handle their own health and just support their efforts. Your ICHRA will help cover their unique out-of-pocket costs based on the parameters for reimbursements you set.


Group health plans are known for their lofty investment points. Considering the effects of the pandemic, many businesses don’t have the budget for these costly plans. But they still need to find health insurance provisions to offer benefits and remain compliant with regulations, but also to protect their teams with certain coverage options. The ICHRA can often be the most affordable way forward in meeting both objectives.

2. Better for Employees

An ICHRA doesn’t just make sense to the business bottom line. It’s also proving to be incredibly popular among the employees leveraging the reimbursement model. From a staff perspective, there are many reasons why an ICHRA makes sense right now.

Employees Get the Coverage They Want

With a traditional group plan, employees would often be confined to set deductibles, copays, and in-network provider guidelines. But with an ICHRA, a participating employee can take control and choose the type of coverage they actually want. For example, those with more acute healthcare needs can find a higher-tiered ACA plan, while healthy, younger employees can opt for the low-premium plans. Each member under the ICHRA umbrella can then submit for reimbursement based on the expenses they incur specifically for that healthcare they want and need.

More Employees Can Be Eligible

If you have employees among your company ranks who fall into a part-time, seasonal, or temporary worker category, the ICHRA makes perfect sense. These types of workers typically aren’t eligible to participate in a group plan. However, the ICHRA, based on how you set it up, can offer reimbursement benefits to a wide variety of employee types that wouldn’t otherwise be able to have company-sponsored coverage.

Reimbursements Offset Actual Costs

No one likes to pay a premium they can’t afford for coverage they can’t use to the fullest. ICHRAs allow employees to experience real reimbursement benefits. In some cases, even the monthly premium for an ACA Marketplace plan can be reimbursed. Copays, prescription costs, and deductibles can all be part of the ICHRA reimbursement model. And your staff will appreciate the opportunity to receive payments for costs they actually have.

3. Different Times Call for Different Company Benefit Solutions

Today’s workplace is different. How businesses view company culture is different. And the needs of both companies and employees are different. It only makes sense that health insurance coverage options adapt. The ICHRA is uniquely positioned to take company benefits platforms into the future.

Federally Compliant as an Affordable Health Platform

Despite the ever-changing rules and federal guidelines for compliance, companies can still carve out budgets and flexible reimbursement arrangements under an ICHRA without compromising compliance. It’s the way today’s companies can move forward with options that work for everyone and still maintain a consistent platform compliant with ACA mandates.

Clear Guidelines for Implementation

The ICHRA model is also increasingly popular today because it doesn’t require any costly overhauls to implement. There are guidelines for setup and reporting, but many companies find they can develop, launch, and manage the reimbursement model themselves. Essentially, the ICHRA is yours to create and control. And it’s possible to make the transition to an ICHRA without costly or complicated processes.

Roll reimbursements into your existing expense reimbursement model. Provide resources for your existing HR teams to help communicate the ICHRA parameters to participating staff. In many ways, it’s a more efficient and easy way to offer benefits.

Third-Party Administrators Can Help

If you have a sizable employee roster and you need help with a transition to an ICHRA, there are third-party administrators who can help. For Example, W3LL can help you with everything from developing your ICHRA platform to launching and managing ongoing reimbursements and analytics. And W3LL can ensure your ICHRA follows any changing guidelines out of Washington.

HHS predicts that over the next ten years, more than 800,000 businesses will adopt the ICHRA model as their benefits plan of choice. If you’re thinking your company may be ready to become one of them, let W3LL be your guide. The ICHRA model makes sense for a lot of reasons, including those mentioned above. Take advantage of the countless benefits for your teams and your bottom line. If you need more reasons to consider a change, contact us!