The manufacturing industry is a dynamic sector that forms the backbone of our economy. There are 12.9 million1 manufacturing jobs nationwide, ranging from automotive and electronics to furniture and textiles.
With a workforce that’s often exposed to occupational health risks and job-related injuries, providing comprehensive medical insurance isn’t just a legal obligation in some cases, but a critical component in maintaining employee well-being and productivity. However, with the ongoing changes in healthcare laws and the plethora of plans available, choosing the right insurance coverage can be a difficult task.
In this article, we’ll review health benefit options designed to address business needs, ensure safety, and improve employee retention at your manufacturing company.
In this blog post, you’ll learn:
Let’s start with the best option for your business. Individual coverage health reimbursement arrangements (ICHRAs) are employer-funded health benefits that offer flexibility and affordability.
They work for manufacturing companies of all sizes. They’re particularly helpful to those classified as applicable large employers (ALE) that need to meet the Affordable Care Act’s (ACA) employer mandate.
With an ICHRA, you give your employees a tax-free contribution for their individual health insurance instead of buying group health insurance or administering a risky self-funded group plan.
Here’s how it works:
The federal government introduced the ICHRA in 2020, and it’s growing more popular each year. According to the HRA Council2, ICHRA adoption increased by 21% from 2024 to 2025, fueled by employers seeking flexible, cost-efficient alternatives to traditional group health plans.
Our report found that the five fastest-growing industries in ICHRA adoption are:
The ICHRA offers several advantages for employers, but it comes with a learning curve. There are new healthcare regulations to follow, and many of your employees haven’t had to shop for their own insurance coverage before.
Remodel Health is committed to making your transition to ICHRA seamless by providing white-glove service through our ICHRA+ platform.
Our team of experts handles:
Plus, your employees don’t have to worry about working with a health insurance agent or navigating the Health Insurance Marketplace on their own. They can shop for off-exchange individual health insurance plans directly through Remodel Health.
Employer-sponsored group health insurance is a type of plan offered by employers to their employees as part of their benefits package. This insurance provides healthcare coverage to a group of people, typically employees and their dependents, under a single policy.
Here’s how it works:
For years, group health insurance has been the dominant option for employers. But many can’t keep up with its rising costs. In 2024, the average annual premiums for employer-sponsored health plans increased by 6% for single coverage and 7% for family coverage. This is what makes an ICHRA a more desirable choice.
With a self-funded health plan, also known as a self-insured health plan, you assume the financial risk of providing health benefits to your employees. Instead of paying fixed premiums to an insurance company as you would with a group health plan, the employer directly funds the claims of its employees.
Self-funded health insurance can be an attractive option for employers, especially those with a relatively healthy workforce and the capacity to manage a benefits plan efficiently. According to KFF, 63% of insured employees had self-funded plans in 2024.
Nevertheless, there’s a risk of financial loss if employee claims are higher or more frequent than anticipated. In the manufacturing industry, where employees often deal with hazardous materials and heavy machinery, you may face higher or more expensive claims than the average employer.
The ICHRA offers the same perks as a self-funded health plan without the financial risk. You maintain cost control since you decide how much you want to offer your employees each month and aren’t responsible for any additional expenses they incur.
Employer-provided healthcare benefits are an essential part of any employee benefits package. Understanding the various health insurance options is crucial for manufacturing companies that want to protect their workforce and foster a loyal, healthy team. While group health insurance has been the standard for many years, ICHRAs provide an affordable, modern solution for coverage.