Carriers are investing in ICHRA-specific and specialized health plans

Individual coverage health reimbursement arrangements (ICHRAs) are gaining momentum. But many employers, HR leaders, and broker consultants may still wonder, “Can the individual market keep up?”

Health insurance companies are proving it will. Over the last couple of years, including in 2025, insurers have started investing in ICHRA-specific and specialized individual health plans.

In this article, we’ll explain the benefits of this shift for both employers and employees as they move away from traditional group health plans.

In this blog post, you’ll learn:

• The benefits of individual coverage HRAs (ICHRAs) for employers and employees.
• The carriers that are investing in ICHRA.
• How Remodel Health can help you offer this affordable health benefit to your team.

Is ICHRA still a viable option when individual insurance rates increase? Yes, and here’s why.

What is ICHRA?

First, a little backgroundon this modern health benefit. The individual coverage health reimbursement arrangement (ICHRA) became available in 2020 as an affordable alternative to traditional group health insurance. It allows employers to offer employees a tax-free contribution that they can spend on individual health insurance premiums.

Here’s how it works:

• Employers set a contribution amount for their employees. According to Remodel Health’s 2024 ICHRA Report, the average monthly allowance offered by applicable large employers (ALEs) clients was $448. Employers can also vary allowances based on 11 employee classes, employee age, and family size.
• Employees shop for individual health insurance plans that suit their unique needs. They’re no longer stuck with a one-size-fits-all group health plan. They can purchase qualified health plans on the Affordable Care Act’s (ACA) public exchangeor work directly with a broker or health insurance company.
• If the individual health plan they choose costs more than their allotted allowance, they pay the difference. If an employer offers a monthly contribution of $448, and an employee picks a health plan with a $500 monthly health insurance premium, they pay the remaining $52.

The ICHRA can also be ACA-compliant for large employers. When ALEs offer affordable ICHRAs, it satisfies the ACA’semployer mandate. This is because employees need to enroll in individual health plans that meet minimum essential coverage(MEC) and minimum value standards to participate.

Why carriers are tailoring plans for the ICHRA market

As more employers transition from group health insurance to individual coverage health reimbursement arrangements (ICHRAs), carriers are responding to clear market demand.

Several factors are driving investment in this health benefit:

• Rapid growth in ICHRA adoption.The HRA Councilfound that there was a 34% increase in ICHRA ALE adoption between 2024 and 2025. Additionally, 92% of employers who provided an HRA in 2024 had opted to maintain it in 2025.
• Risk-pool stability.ICHRA transitions employers from a small employer-based risk pool to a statewide risk pool that typically encompasses thousands to hundreds of thousands of members. Larger and more stable risk pools from ICHRA-funded individual enrollments give carriers confidence to invest in better plan design.
• Competitive pressure. As some insurers roll out ICHRA-friendly plans, others follow. Carriers are starting to design options that better align with employer expectations and employee needs.

Recent carriers leading the charge

The industry has seen substantial funding in the past year, reinforcing carrier confidence in individual coverage health reimbursement arrangements (ICHRA) and the shift toward defined contribution benefits. With growing interest in ICHRA and the individual market in general, carriers have introduced new plans to meet individuals’ needs.

Anthem introduces ICHRA-specific plans

Anthem has rolled out new, ICHRA-specific health plans for the 2026 plan year across multiple states. These plans are designed to pair seamlessly with an ICHRA.

States with Anthem ICHRA plans include¹:

• Colorado
• Georgia
• Indiana
• Kentucky
• Missouri
• Nevada
• New Hampshire
• Ohio
• Wisconsin

Anthem’s ICHRA offerings are organized into three metal tiers: Anthem ICHRA Bronze Pathway, Anthem ICHRA Silver Pathway, and Anthem ICHRA Gold Pathway.

Each Pathway plan type serves as an umbrella, with multiple plan designs available within each metal tier. They offer several deductible and HSA options to meet different employee needs and budgets.

Examples include:

• Anthem ICHRA Silver Pathway 5400 HSA²
• Anthem ICHRA Silver Pathway 4000 HSA³

The table below shows how these plans compare as an example.

Plan details vary by state. Employers and employees should verify HSA eligibility before enrolling in a plan.

Additional investments

Anthem isn’t the only one taking notice of ICHRA’s rising popularity.

Here are a few more carriers and platforms actively investing in ICHRA-focused offerings:

• Oscar. Oscar⁴ is among the insurers committing to ICHRA growth. It’s developing specialized products targeted to ICHRA participants, offering plan designs that more closely resemble the richer health coverage people expect from employer-sponsored group insurance plans. For example, the new Hy-Vee Health with Oscar plan⁵. It’s available for the 2026 Open Enrollment period. Under this model, employees enrolled in the plan receive no-cost care at Hy-Vee Health Exemplar Care clinics, discounted prescriptions at Hy-Vee pharmacies, and Oscar’s care coordination services.
• Centene. Centene⁶has made ICHRA a strategic priority. It created an ICHRA-dedicated division and rolled out ICHRA-focused individual plans through its Ambetter brand in multiple states during the 2025 Open Enrollment period.
• HealthSherpa. HealthSherpa⁷recently launched “ICHRA Marketplace,” designed to provide brokers, carriers, and employers with a seamless quoting and enrollment process.
• ICHRA administrators. Leading providers like Remodel Health are accelerating ICHRA adoption. With more than$100 million in funding, Remodel Health is scaling its platform to support more employers seeking personalized, sustainable health benefits.

What this means for employers considering ICHRA

If you’re thinking about offering ICHRA, these carrier investments are reassuring.

It means:

• Employees will have better choices. The growing variety of plan options, networks, and designs means individuals can find health coverage that aligns with their needs, location, and budget.
• Health insurance costs are getting more predictable. With customized allowances and competitively priced individual plans, employers can better manage their health benefit budgets.
• Quality of care is improving. As carriers compete, the quality of plans improves.
• The market is growing stronger .Anticipate more competitive premiums and ongoing growth in plan options.

How Remodel Health helps you navigate these new options

The individual market is evolving quickly, and that’s good news for employers using ICHRA. But it also means more complexity. That’s where Remodel Health comes in. We bridge the gap between evolving carrier offerings and your organization’s unique needs to make sure your ICHRA delivers maximum value.

With our ICHRA+ solution, we help you:

• Build an ICHRA strategy that’s tailored to your budget and workforce.
• Understand carrier changes and how they affect your offering and employees.
• Support your employees during onboarding and enrollment. They can also shop for health coverage straight from their Remodel Health accounts.
• Stay compliant every step of the way, which is especially important as new carriers and plan types hit the market.

Conclusion

Group health plans now have competition. The individual coverage health reimbursement arrangement (ICHRA) offers a more flexible and affordable way for employers to help employees with their health insurance costs. The recent wave of carrier investment shows that ICHRA is becoming a core part of how employers deliver health benefits.

If you’re considering an ICHRA or optimizing an existing one, Remodel Health is here to help. Schedule a call with a personalized benefits advisor today to get started!

How can ICHRA save you money? Here are the hidden costs of group insurance plans that ICHRA eliminates.

References

1. https://sbc.anthem.com/dps/
2. https://sbc.anthem.com/dpsdeeplink/deepLink/AnthemICHRASilverPathway5400HSAIncentives/8TCY/English/DG166708945356.pdf
3. https://sbc.anthem.com/dpsdeeplink/deepLink/AnthemICHRASilverPathway4000HSAIncentives/97W6/English/DG166708963096.pdf
4. https://www.hioscar.com/blog/why-oscar-is-betting-on-the-future-of-individual-health-coverage
5. https://www.businesswire.com/news/home/20251104997982/en/Hy-Vee-Health-and-Oscar-Healths-New-Concierge-Care-Plan-Redefines-Healthcare-for-the-Des-Moines-Business-Community
6. https://www.healthcaredive.com/news/ichra-adoption-growing-employers-congress-aca/750988/?
7. https://info.healthsherpa.com/ichra