Report: Navigating the Future of ICHRA

February 27, 2025 | Insights

An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a mechanism established in 2020 that allows employers to contribute a fixed dollar amount, which employees use for premiums for an individual health plan of their choosing and other qualified medical expenses. ICHRA is a potentially transformative way for employers to control runaway healthcare costs. The ICHRA market is growing at around 60% year-over-year, with the most rapid growth in the large employer segment. The next few years will be critical in determining whether ICHRA takes hold among jumbo employers or remains a niche SMB product.

This report includes a detailed review of the ICHRA mechanics and growth scenarios, proprietary profiles of 13 leading ICHRA administration companies, and perspectives from carriers, brokers, employers, and other stakeholders.

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    James Metcalf - Bailey & Company

    James Metcalf

    Co-Head of Healthcare Services

    Rebecca Springer - Bailey & Company

    Rebecca Springer

    Director, Market Development

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    ABOUT BAILEY & COMPANY

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