By Holly Bengfort on Aug 27, 2026, 12:42:54 PM
An individual coverage health reimbursement arrangement (ICHRA) provides employers with a flexible way to offer health benefits while giving employees more choice in their health insurance coverage.
But administering an ICHRA involves more than setting a contribution amount. Employers and benefits consultants also need to manage enrollment, employee questions, compliance, documentation, and ongoing administration.
So, should you manage your ICHRA with software or work with a full-service administrator?
In this article, we'll compare both options to help you determine which approach is right for your organization.
In this blog post, you'll learn:
- How ICHRA software and full-service administration differ.
- The pros and considerations of each approach.
- How to determine which approach best fits your team's time, budget, and compliance needs.
What is ICHRA software?
ICHRA software is a technology platform that helps employers administer an ICHRA. Rather than managing the benefit through spreadsheets, email, and manual processes, employers can use software to centralize and automate many administrative tasks.
Depending on the platform, ICHRA software may help employers:
- Set employee eligibility and contribution amounts
- Establish employee classes
- Track employee enrollment
- Manage reimbursement requests
- Store documentation
- Verify individual health insurance coverage
- Generate reports
- Integrate with payroll or HR systems
- Support required notices and compliance tasks
For employers that have the time and expertise to manage their ICHRA internally, software can provide a cost-effective way to streamline administration. However, software is a tool. It doesn't necessarily mean someone else is managing the benefit for you.
What is full-service ICHRA administration?
Full-service ICHRA administration combines technology with a team of experts who help manage the benefit from implementation through renewal.
Instead of simply giving your HR team a platform to operate, a full-service administrator can take on much of the day-to-day work involved in running an ICHRA.
That can include:
- Designing the ICHRA based on your workforce and budget
- Setting up employee classes and contribution amounts
- Managing implementation and onboarding
- Educating employees about how an ICHRA works
- Helping employees shop for and enroll in individual health insurance
- Processing premium payments
- Monitoring eligibility and documentation
- Supporting ongoing compliance
- Helping with required notices and reporting
- Answering employee questions
- Troubleshooting issues throughout the year
- Supporting renewals and plan changes
Bill Williams, Head of Product at Remodel Health, said the biggest opportunity for ICHRA technology is taking work off employers' plates behind the scenes.
“Data integrations across carriers, payroll systems, and other benefit products make it easier for companies to manage their ICHRA benefits,” Williams said. “Our goal is to do as much of this work for employers behind the scenes, with our technology, as possible, so that our clients can spend time focusing on high-value things, like their employees, and not worrying about whether a benefit was paid.”
“Data integrations across carriers, payroll systems, and other benefit products make it easier for companies to manage their ICHRA benefits. Our goal is to do as much of this work for employers behind the scenes, with our technology, as possible, so that our clients can spend time focusing on high-value things, like their employees, and not worrying about whether a benefit was paid.”
Bill Williams
Head of Product
The key difference between ICHRA software and full-service ICHRA administration is who does the work. With a software-only approach, your team uses technology to administer the benefit. With full-service administration, your team has access to technology and people who help manage the benefit alongside you.
“We believe that technology and people must work together,” Williams said. “Our technology scales empathy, and our attention to our clients and their employees.”
“We believe that technology and people must work together. Our technology scales empathy, and our attention to our clients and their employees.”
Bill Williams
Head of Product
ICHRA software vs. full-service administration
The exact services vary by provider, so employers should review what an ICHRA vendor actually includes before comparing prices.
Here's a look at how the two approaches generally compare:
|
ICHRA software |
Full-service ICHRA administration |
|
|
Technology platform |
Included. |
Included. |
|
Employee enrollment |
Employees enroll through the platform and the employer manages the process. |
Employees can enroll through the platform. The ICHRA administrator supports and manages employee enrollment. |
|
Administrative automation |
The employer uses the software to automate administrative tasks. |
The administrator manages and automates administrative tasks on the employer’s behalf. |
|
Reporting and documentation |
The employer is responsible for managing reporting and documentation. |
The administrator provides support with reporting and documentation. |
|
Payroll/HRIS integrations |
Payroll and HRIS integrations vary by provider. |
Payroll and HRIS integrations are typically available, depending on the provider. |
|
ICHRA plan design |
The employer leads plan design, with varying levels of support from the provider. |
The administrator provides expert guidance and support with plan design. |
|
Implementation |
The employer typically leads implementation, with limited support from the provider. |
The administrator provides hands-on support. |
|
Employee education |
The employer typically leads employee education. |
The administrator provides employee education and support. |
|
Health plan shopping |
Health plan shopping support varies by provider. |
Employees have access to dedicated support for health plan shopping. |
|
Ongoing employee support |
The employer typically handles ongoing employee questions and support. |
The administrator provides ongoing employee support. |
|
Compliance guidance |
Compliance guidance varies by provider. |
The administrator provides ongoing expert compliance support. |
|
Renewal support |
The employer typically leads the renewal process, with limited support from the provider. |
The administrator provides support throughout the renewal process. |
|
Day-to-day administration |
Day-to-day administration falls on the employer. |
The administrator and employer share responsibility for day-to-day administration. |
|
Internal time commitment |
An ICHRA software model generally requires a higher internal time commitment from the employer. |
Full-service administration generally requires a lower internal time commitment from the employer. |
When ICHRA software may be the right fit
Software can make sense when your organization has the internal resources to manage the benefit.
You have an experienced benefits team
If your HR or benefits team already understands ICHRA requirements, employee eligibility, individual health insurance, and benefits compliance, your organization may not need as much hands-on support. Software can give an experienced team the infrastructure it needs without outsourcing every administrative task.
Your ICHRA is relatively straightforward
A simple workforce with straightforward eligibility rules and contribution structures can be easier to manage internally. For example, an employer with one employee class, a consistent contribution strategy, and a small number of employees may find that software provides everything it needs.
You want more direct control
Some employers prefer to handle their benefits administration internally. Software gives your team direct access to the platform and lets you manage many processes yourself.
Keeping administrative costs low is a priority
Software-only solutions can cost less than a full-service model, depending on the provider and the services included. But it's important to consider the total cost of administration, not just the vendor's monthly or annual fee. Internal staff time has a cost, too.
When full-service ICHRA administration may be the better fit
For many growing organizations, the biggest advantage isn't simply the technology. It's having an experienced team available to provide full-service support and handle the work that happens around the technology.
You're growing quickly
Growth can make a previously simple benefits process much more complicated. As your workforce grows, you may add employees across multiple states, create different employee classes, change contribution strategies, or encounter more complex eligibility situations.
A growing company may also have an HR team that's taking on new responsibilities at the same time. Adding ICHRA administration to that workload can become difficult to sustain.
Full-service administration can give growing companies additional capacity without requiring them to build a larger internal benefits operation.
You have a lean HR or benefits team
Small and midsize companies often don't have a dedicated benefits administrator. Instead, HR professionals may handle benefits alongside recruiting, payroll, employee relations, compliance, and other responsibilities.
In that environment, a software platform can automate tasks, but someone still needs to know what to do and when. A full-service administrator can fill that gap.
You operate across multiple states
Individual health insurance varies by location. Employees in different states may have different carriers, networks, premiums, and plan options.
For a geographically dispersed workforce, helping employees understand and select individual coverage can become a significant administrative responsibility.
A full-service administrator can provide employees with guidance while giving the employer a centralized administration experience.
You don't want your HR team to become the ICHRA help desk
An ICHRA changes how employees receive their health benefits. Employees may have questions about eligibility, individual insurance plans, premiums, reimbursements, enrollment periods, or what happens when their circumstances change. Those questions don't necessarily stop after Open Enrollment.
With a software-only approach, those questions may ultimately land with your HR team. Full-service administration gives employees another resource for benefits questions and troubleshooting. That human support becomes especially important as an ICHRA grows or becomes more complex.
“We can scale routine processes and data integrations with technology,” Williams said. “We can't scale the compassion, understanding, and support that is needed to ensure the ICHRA experience is a positive one without people.”
“We can scale routine processes and data integrations with technology. We can't scale the compassion, understanding, and support that is needed to ensure the ICHRA experience is a positive one without people.”
Bill Williams
Head of Product
Compliance expertise isn't available internally
ICHRA compliance involves more than making sure reimbursements are processed correctly. Employers need to consider plan design, employee classes, eligibility, required notices, substantiation, reporting, and other regulatory requirements. Requirements can also change over time.
Software can automate or facilitate some of these tasks, but employers still need to understand their responsibilities and make sure the plan operates correctly.
A full-service administrator can provide ongoing compliance guidance, helping your team stay on top of administrative requirements and giving you greater peace of mind.
Don't compare price alone
At first glance, ICHRA software is the more affordable option. But the vendor's price doesn't tell you the full cost of administering an ICHRA.
Consider the time your team spends:
- Learning how to administer the benefit
- Setting up the plan
- Answering employee questions
- Monitoring enrollment
- Reviewing documentation
- Managing premium payments or reimbursements
- Following compliance rules
- Preparing required notices and reporting
- Troubleshooting employee issues
- Managing renewals
- Keeping up with regulatory changes
For an organization with significant expertise in internal benefits, those responsibilities may be manageable. For a growing company with a lean HR team, they can quickly become a drain on time and resources.
How Remodel Health approaches ICHRA administration
At Remodel Health, we believe technology should make ICHRA administration easier, not leave employers to figure everything out on their own. Remodel Health with ClearChoice combines innovative ICHRA software with dedicated experts who support employers and employees throughout the benefit lifecycle.
During implementation, our Launch Coordinators help employers and employees navigate the onboarding and enrollment process. Our licensed Benefit Advisors can help employees with challenging medical situations understand their individual health insurance options and choose coverage that fits their needs. Customer Success Representatives provide ongoing support, while Account Managers help employers and benefits consultants with long-term strategy, compliance, and renewals.
“When technology handles the day-to-day work, our Benefit Advisors can focus on helping people navigate complicated health care decisions, our Launch Coordinators can focus on making onboarding seamless, and our Account Managers can spend more time on strategic conversations with clients,” Williams said.
“When technology handles the day-to-day work, our Benefit Advisors can focus on helping people navigate complicated health care decisions, our Launch Coordinators can focus on making onboarding seamless, and our Account Managers can spend more time on strategic conversations with clients."
Bill Williams
Head of Product
Our platform also supports more than 200 HRIS and payroll integrations to reduce manual work. Rather than requiring employees to pay their insurance premiums and wait for monthly reimbursement, our AutoPay feature streamlines the payment process by paying premiums directly on employees’ behalf.
According to Remodel Health’s 2026 National ICHRA Report, our platform processed more than $136.5 million in premium payments for ICHRA participants in 2025. That included nearly 200,000 individual premium payments sent to more than 60 insurance carriers nationwide.
Remodel Health also supports ongoing administrative and compliance needs, including:
- ICHRA notices and other required documentation
- Forms 1094 and 1095 guidance
- PCORI fee calculations
- Form 720 data and instructions
That combination matters because a successful ICHRA requires more than a platform. It requires the right people behind the platform.
Conclusion
Choosing between ICHRA software and full-service administration comes down to your team's time, expertise, budget, and how much responsibility you want to manage internally.
Software can work well for employers with the resources to handle ICHRA administration themselves. For growing companies with lean HR teams or more complex needs, full-service administration can reduce the administrative burden while providing ongoing expert support.
Ready to experience full-service support? Schedule a call today to learn how Remodel Health can make offering an ICHRA easier!
