Future trends and considerations for ICHRAs

1. The ICHRA could still become the “CHOICE Arrangement"

In 2025, the federal government considered codifying and renaming the ICHRA as the “CHOICE Arrangement”. Congress introduced legislation to do so twice in 2025. While the CHOICE Arrangement Act hasn’t gone into effect, it reflects broader interest among lawmakers in making the ICHRA the preferred employer-sponsored health benefit, which could make coverage more affordable and flexible for employees across the U.S.

Regardless of any potential name change, the ICHRA would continue to operate as it does now as a viable alternative to traditional group health plans. Any future rebranding or slight changes to how the benefit works would likely enhance, not reduce, the way the ICHRA supports business owners and employees.

Read more about the ICHRA and the CHOICE Arrangement Act in our full blog.

2. Insurance carriers are offering ICHRA-specific health plans

Insurers are increasingly investing in ICHRA by developing plans specifically designed for the benefit, especially in off-exchange marketplaces. These plans are meant to be more flexible, have more competitive pricing, and align more closely with the ICHRA’s structure.

Beginning January 1, 2026, Anthem released ICHRA-specific plans in the following states:

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

Other major insurance providers are also making changes to better coordinate with the ICHRA.

For example:

• Oscar is developing ICHRA-specific health plans that include enhanced care management and coordination¹.
• Centene is launching ICHRA plan offerings through its Ambetter brand across multiple states².
• Wellpoint started offering Essential ICHRA plans with low-cost HMO and POS options in Texas³ and Florida⁴ as of 2026. HealthSherpa is also building ICHRA-specific enrollment marketplaces to improve the shopping and enrollment experience for brokers and employees.

As more carriers enter the health insurance market and revise their plan offerings, employers can expect broader plan availability and stronger provider networks, making ICHRAs an increasingly popular option over one-size-fits-all group plans.

3. Early adoption across top-performing industries is a positive sign of growth

Several industries have been early adopters of ICHRAs, using them as a strategic way to manage healthcare costs while offering their employees competitive benefits. The nonprofit, education, and professional services industries have been quick to pick up the ICHRA due to its flexibility, especially since these sectors often have diverse workforces or remote, multi-state employees.

Remodel Health’s 2024 ICHRA Report found that the top industries for ICHRA were:

• Business services
• Nonprofit
• Technology
• Healthcare
• Manufacturing

These early adopters have helped to demonstrate the ICHRAs success and scalability across various types of businesses, making more industries likely to follow suit. Employers who are looking at what their competitors are offering to better attract and retain employees are increasingly considering ICHRAs as a personalized solution that can better meet the needs of today’s workforce.

Learn which industries are best for the ICHRA in our article.

4. ICHRAs are gaining support among larger employers

While HRAs initially gained popularity among small and mid-sized businesses, the ability of the ICHRA to support companies of all sizes has helped to make them more appealing to the large group segment. Applicable large employers (ALEs), which are businesses with 50 or more full-time equivalent employees (FTEs), are increasingly adopting ICHRAs due to their scalability and long-term cost control.

According to the HRA Council’s 2025 report, below are the ICHRA growth trends for ALEs from 2023 to 2025⁵:

• Organizations with 50 – 99 employees: 44% increase
• Organizations with 100 – 199 employees: 49% increase
• Organizations with 200+ employees: 31% increase

ICHRA adoption continues to grow rapidly year over year, with larger employers among the fastest-growing groups. At Remodel Health, we saw a significant growth in the 500+ employee company size over the past year. We also experienced a 95% net retention rate from 2024 to 2025, proving that employers are satisfied with their ICHRA and are looking to keep them long term.

5. Brokers are suggesting the ICHRA to their clients more frequently

A few years ago, bringing up ICHRAs in broker conversations was challenging. Many advisors saw them as solutions that worked only for very specific client cases. That mindset has shifted significantly. Today, most national and super-regional brokerage companies have a clear ICHRA strategy and know when to bring it up to clients if other options aren’t working for them.

The most progressive broker consultants have taken the time to understand ICHRA, how it works, and client scenarios where it would be the best fit. This allows them to suggest ICHRAs not as a last-ditch option, but as a strategic solution that is truly the right call. As broker education continues to improve, more employers are introduced to ICHRAs earlier in the decision-making process, increasing the likelihood of adoption.

“ICHRA isn't just a fringe thing you show your most desperate clients; it's becoming a mainstay in the annual renewal discussion,” said Jason Pappas, Vice President of Broker Sales, East at Remodel Health. “The top consultants are ICHRA educated and are passing that knowledge along to their clients with real reasoning and data around the why or why not of ICHRA.”

6. Expanded HSA compatibility makes ICHRAs more beneficial

With the passing of the One Big Beautiful Bill Act in July 2025, all on-exchange bronze plans are now considered HSA-qualified⁶. This change gives employees more opportunities to pair a health savings account (HSA) with an ICHRA, so they can receive tax-free ICHRA contributions for their monthly premiums while contributing pre-tax funds to an HSA for future medical expenses. This update also enables employers to create more attractive and competitive benefits packages without increasing costs, which can go a long way toward hiring top talent.

7. ICHRA vendors are striving to deliver better service

As ICHRA adoption continues to grow, vendors are rapidly trying to improve both the employer and employee experience. Successful ICHRA vendors are going beyond basic, software-only administration and instead offering end-to-end support. This includes robust plan design guidance, compliance management, employee education, and ongoing account support.

As the ICHRA becomes more popular, comprehensive, service-driven platforms are becoming vital for a successful ICHRA benefit and long-term employee satisfaction. Employers should look for a partner that combines technology with hands-on expertise. At Remodel Health, the largest and most trusted ICHRA provider, we offer a full-service ICHRA+® solution backed by a team of more than 200 employees dedicated to simplifying the entire process — from initial setup to year-round administration.

Learn the eight ways Remodel Health stands out from other ICHRA vendors in our article.

8. The rising cost of individual coverage is making employers rethink their benefits strategy

On January 1, 2026, the enhanced premium tax credits expired, increasing the cost of individual health coverage for millions of consumers nationwide. Without these ACA subsidies, many employees are paying higher premiums and out-of-pocket medical costs than in previous years. Early predictions suggest these high prices will continue into 2027. For employers not offering coverage or those relying on wage increases or stipends, now is the time to rethink your benefits strategy.

By offering an ICHRA, employers can keep costs predictable and help employees offset rising premiums. Employees can choose the coverage that fits their needs and budget and receive a tax-free contribution to keep their overall medical expenses as low as possible.

Conclusion

ICHRAs are becoming a staple in the health benefits landscape, and Remodel Health is leading the health benefits revolution. From rising coverage costs to increased carrier participation, the traction behind the personalized ICHRA continues to grow. Employers who stay ahead of these trends will be better equipped to offer flexible, personalized health benefits.

As the market continues to shift, partnering with the right ICHRA administrator is vital to ensuring your benefit runs smoothly and provides your employees with enough value. Contact us today to learn more about the ICHRA and how we can ease the administrative burden!

This blog article was originally published on September 7, 2023. It was last updated on March 30, 2026.

References

1. Hy-Vee Health and Oscar Health’s New Concierge Care Plan Redefines Healthcare for the Des Moines Business Community
   2. ICHRA adoption grows as Congress mulls codifying the coverage into law
   3. Wellpoint Essential ICHRA Silver 3400 HSA (+ Incentives)
   4. Wellpoint Essential ICHRA Silver 2000 ($0 Virtual PCP + $0 Select Drugs + Incentives)
   5. HRA Council - 2025 Growth Trends Report
   6. H.R.1 — 119th Congress (2025-2026)