Transforming health benefits for assisted living facilities with ICHRA

ICHRA+ empowers assisted living organizations to manage rising benefit costs, support a diverse workforce, and simplify administration, all while improving employee satisfaction.

As demand for quality senior care continues to rise, the industry is projected to face a shortfall of millions of workers by 2030 and 2040 across all roles. To ensure continued excellence in healthy aging, assisted living organizations must focus on strategies to attract and retain skilled employees in an increasingly competitive labor market.

This is where an individual coverage health reimbursement arrangement (ICHRA) can make a transformative difference. With the help of Remodel Health, the nation’s most trusted ICHRA administrator, assisted living facilities can offer meaningful health coverage that fits every employee, without the administrative burden or unpredictable expenses of a traditional group plan.

Understanding the ICHRA

Introduced in 2020, an ICHRA allows senior living operators to provide tax-free contributions to employees for their individual health insurance premiums. Instead of buying a one-size-fits-all group plan or establishing a self-funded group plan for their entire care team, assisted living organizations can provide a fixed monthly allowance that employees use to purchase plans that best suit their needs.

Here’s how it works:

You set a tax-free monthly allowance. With no annual limits, senior living facilities can offer contribution amounts that work with their budget. They can tailor contributions based on employee classes, such as full-time, part-time, by age, and by family status. Remodel Health’s 2024 ICHRA Report found that the average monthly allowance offered by applicable large employers (ALEs) is $448.
Your employees choose their own coverage. Staff members shop for and enroll in their preferred individual health insurance plans. They then pay their premiums with their ICHRA contributions. For example, if an employee receives a $400 monthly allowance and selects a plan with a $400 premium, their coverage is fully paid. If their chosen policy costs more than their contribution, they pay the difference.
You control costs, and employees gain flexibility. ICHRA bridges the gap between affordability and choice, creating a win-win situation for senior living communities and their employees alike.

Employer satisfaction with ICHRAs continues to rise. According to the HRA Council, adoption increased 21% between 2024 and 2025, as more organizations recognize its financial and operational advantages.

Why ICHRA works for assisted living facilities

Cost predictability

With healthcare costs expected to keep climbing, assisted living administrators need a solution that provides financial stability without compromising care or benefits.

ICHRA lets you set predictable monthly budgets while avoiding the high renewal increases and claims volatility of traditional group health insurance. You can easily adjust contribution levels each year as your senior living community grows or your workforce changes.

Flexibility for a diverse workforce

Assisted living staff members have varied needs. Some may opt for low-premium, high-deductible health plans, while others may prioritize family coverage or richer benefits.

ICHRA allows each senior living employee to choose what works for them, whether they’re full-time caregivers, part-time kitchen staff, or administrative leaders. This flexibility helps boost satisfaction and participation in your benefits program.

Recruitment and retention

Staffing shortages are a persistent challenge in the senior living industry. Offering personalized, portable health benefits can set your organization apart.

According to PeopleKeep by Remodel Health’s 2024 Employee Benefits Survey, 92% of employees say health benefits are important when considering a job offer. With ICHRA, you can attract and retain top caregivers by offering a modern benefit that fits their lifestyles and needs, without straining your budget.

Simplified administration

Managing a traditional group health plan or ICHRA can be time-consuming and complex for assisted living organizations. Remodel Health’s ICHRA+ platform and white-glove service eliminate administrative headaches by handling plan design, compliance, and premium payments for you.

Our team of experts manages:

Onboarding and employee education
ICHRA plan design and documentation
Integration with payroll and HRIS systems
Autopay for employee individual health insurance premiums
Compliance filings and notices

With our support, your HR team can spend less time on paperwork and more time focusing on residents and staff.

Straightforward shopping experience

Through the Remodel Health ICHRA+ platform, your senior living employees can easily shop for individual health plans directly in their accounts. Licensed benefit advisors are available to guide them through plan options and ensure they select coverage that meets their unique needs. This guided shopping experience simplifies enrollment and helps maximize participation and satisfaction.

Assisted living organizations across the country are already discovering the benefits of switching to ICHRA through Remodel Health. By transitioning from traditional group plans to a personalized reimbursement model, they’ve achieved significant savings and increased employee satisfaction, without sacrificing quality coverage.

Before partnering with Remodel Health, St. Anne’s Retirement Community had a fully-insured group health plan. The senior housing facility cut health benefit costs by 40% with Remodel Health’s ICHRA+ solution.

"We switched to an ICHRA because our insurance rates were increasing by 47% and would continue to do so due to a very large ongoing claim. We could not afford it. We did our research on ICHRAs and approached our broker about the possibility. They connected us with Remodel Health."

Terri Turner

Director of Human Resources, St. Anne's

Why Remodel Health

Enterprise-ready expertise: We specialize in serving large employers, including senior living communities, with more than 100 employees.
Seamless technology: Our advanced ICHRA+ platform integrates with more than 200 payroll and HRIS systems.
Dedicated support: Our account managers and licensed advisors deliver an exceptional experience for both senior living administrators and employees.
Proven outcomes: With a 95% customer retention rate, Remodel Health has a proven track record of success in assisted living and beyond.