The growing role of brokers as consultants with ICHRA

As individual coverage health reimbursement arrangements (ICHRAs) continue to gain traction, brokers are increasingly stepping into the role of trusted advisors, offering strategic insights and personalized guidance. They help businesses navigate the complexities of legal compliance, optimize benefit structures, and align with employees’ needs and expectations.

Understanding this shift is crucial for any broker consultants looking to leverage ICHRA effectively for their clients. In this article, we’ll discuss how health insurance brokers are redefining their roles to become trusted allies in the rapidly evolving employee benefits landscape.

In this article, you’ll learn:

• What’s contributing to the growing popularity of ICHRA.
• How to position yourself as a long-term advisor rather than a transactional sales rep.
• How to bring added value in a benefits landscape that’s becoming more personalized and complex.

What is ICHRA?

The ICHRA is a popular alternative to traditional group health insurance. Introduced in 2020, it gives employers an affordable way to provide comprehensive health coverage. Contrary to what some believe, it isn’t only for small employers. The ICHRA can also meet the Affordable Care Act’s (ACA) employer mandate for applicable large employers (ALEs).

Here’s how it works:

• Your client gives their employees a tax-free monthly allowance to spend on individual health plan premiums. Remodel Health’s 2024 ICHRA Report found that the average monthly allowance offered by ALEs is $448. 
• Employees use their monthly allowance to buy the individual health plans that work best for them.
• Unlike an HSA, any unused funds stay with your client if an employee leaves their organization. Unused funds also go back to the employer at the end of the plan year.

How ICHRA compares to group health insurance

While group plans have been the standard option for several years, they don’t work for every employer. Your clients may be frustrated with the high costs and lack of flexibility that come with experience-rated group plans. ICHRAs are the customizable, cost-effective solution for your clients.

Here’s why employers are making the switch to ICHRAs:

• Flexibility. They can differ employer contributions based on age, family size, and employee class.
• Cost control. They set their own benefits budget and stick to it. They don’t have to worry about annual price hikes or increased costly claims.
• No more rate hikes. With experience-rated group plans, employee benefits usage can impact premiums. Instead, an ICHRA allows employees to buy community-rated individual health plans.
• Tax savings. Allowance amounts are tax-deductible and free of payroll taxes for employers.

Boost your business with ICHRA

For those aiming to enhance their client offerings, ICHRAs are the way to go. According to the HRA Council¹, the number of employers using ICHRAs grew by 21% from 2024 to 2025. Additionally, the report found that employers who opted to switch are committed to their choice, with 92% of those who provided an HRA last year maintaining the offering. This represents a large client pool that you’re missing out on if you don’t add ICHRAs to your book of business.

Increased incentive for Indiana brokers

Indiana has a health insurance tax credit opportunity for small businesses. If you have a client who owns an Indiana-based business with fewer than 50 employees and currently offers health benefits, they can claim tax credits for using an ICHRA. Under Indiana’s House Bill 1004, they can claim up to $400 per employee in the first year and save up to $19,000 in health benefits tax credits.

Partnering with Remodel Health

Interested in adding ICHRAs to your book of business? When you partner with Remodel Health to offer ICHRAs to your clients, you gain access to state-of-the-art technology and white-glove service delivered by experienced professionals who truly care. Your clients benefit from a top-notch enrollment team, and you receive rewards and substantial pay.

By partnering with Remodel Health, you can:

• Gain a deeper understanding of the Remodel Health approach.
• Learn how to offer cost-effective solutions to your clients.
• Explore our tools and resources for improving customer service.

What your clients receive

Administrative burden is enough to make some employers avoid a new health benefit. But our ICHRA administration platform, ICHRA+, makes the switch seamless.

Our team of experts handles:

• Onboarding and support
• Plan design
• Legal plan documents
• AutoPay for employee individual health insurance premiums
• Required ICHRA plan notices
• Providing necessary data for compliance filings

Employees also experience a smoother enrollment process since they can shop for off-exchange health plans directly through their Remodel Health account.

ICHRA Academy

At Remodel Health, we’re dedicated to your success by making you into an ICHRA expert. ICHRA Academy™ is a structured training program designed to empower you with the knowledge and skills you need to offer this modern health benefit.

The course includes brief video lessons and quizzes. It covers topics such as the fundamentals of ICHRA, how to identify ideal clients, and more. Upon completing the course, you’ll feel confident in promoting and managing ICHRAs for your clients.

Here’s why obtaining a certification from ICHRA Academy™ is important:

• By understanding the core principles of ICHRAs, you can leverage them effectively.
• By positioning yourself as an expert who can offer tailored health benefit solutions, you can enhance your value and trust with clients.
• By furthering your health insurance education, you open doors to new opportunities and demonstrate your commitment to excellence.

Conclusion

Today’s brokers serve as vital consultants in guiding organizations through this new era of health benefit strategies. By offering ICHRA in place of a traditional group plan, you tap into the potential of the individual health insurance marketplace. As a result, ICHRA stands out as the perfect choice for clients seeking budget control who still want to provide competitive health benefits to their workforce.

1. https://remodelhealth.com/hra-council-report-growth-trends-for-ichra/