ICHRA for manufacturing companies: Flexible and personalized health benefits for a competitive workforce
Your group renewal just jumped again. If you’re running a multi-plant operation with hourly production workers, salaried engineers, and everyone in between, you may feel stuck offering one plan that fits almost nobody and a bill that keeps climbing. But there’s a better way to fund health benefits, and manufacturers are already switching to it.
An individual coverage health reimbursement arrangement (ICHRA) can help lift this burden. Instead of purchasing a limited group health plan with unpredictable annual renewals, manufacturing employers provide employees with a tax-free monthly contribution that they can use to buy their own health coverage on the individual market. This defined contribution benefit gives employers more control over their budget while offering employees greater choice.
As the nation’s largest ICHRA benefits administrator, Remodel Health is an expert at helping manufacturing business owners and their brokers switch from costly group health plans to personalized ICHRAs that reduce benefit costs, administrative complexity, and promote employee empowerment. No matter the size or scale of your manufacturing business, our team can help you build a health benefits strategy that will support your entire workforce.
100+ manufacturing clients
140,000+ HRA members
95% customer retention
Understanding ICHRA for manufacturing businesses
An ICHRA is an employer-funded health benefit where manufacturing companies give employees a set amount of tax-free money to buy individual health insurance. Depending on their budget and goals, employers determine a monthly contribution, and employees enroll in the individual plans that best fit their medical needs and family situation.
For manufacturers, the ICHRA is a significantly more flexible approach to employee health benefits than traditional group plans. It eliminates the need to work with insurance carriers, ends annual rate hikes, and takes determining premiums based on employees’ past medical claims out of the picture.
Below, we’ll go over how an ICHRA works for manufacturing companies.
1. Employers establish a healthcare contribution strategy
Manufacturers determine a monthly tax-free allowance for eligible employees instead of purchasing a traditional group health plan. Contribution amounts can vary based on employee classes, such as full-time versus part-time employees or salaried versus hourly workers. You can also adjust contributions based on age or family size (such as single or married employees, or those with dependents).
To ensure your contribution strategies are right for you and your team, Remodel Health works with you to develop custom contribution amounts that focus on affordability, employee recruitment, and long-term cost predictability.
2. Employees choose their preferred individual health plan
Rather than enrolling all your employees in a pre-selected group health plan, your employees can select the individual health insurance coverage that’s best for them. This is especially valuable for manufacturing organizations with employees working across multiple locations or states, where insurance carriers, plan options, and provider networks often vary.
Employees can search for insurers, compare policies, and enroll in their selected plan right on Remodel Health's ICHRA+® platform, streamlining the transition process and keeping things simple for your staff. Employees with complex medical situations can also meet one-on-one with licensed Benefits Advisors to explore their coverage options.
3. Employer contributions pay for employee health insurance
After they enroll in their chosen health plan, employees use their ICHRA contribution to pay for their monthly individual health plan premiums on a tax-free basis. Remodel Health makes the payment process simple by facilitating automated premium payments directly to employees’ insurance carriers, so there’s less confusion and risk of missing a payment.
For many off-exchange plans, Remodel Health can also facilitate pre-tax payroll deductions,
Why traditional group health insurance no longer supports modern manufacturing companies
Manufacturing employers have relied on traditional group health insurance for decades. But in recent years, annual premium increases have outpaced inflation, and more and more high-cost medical claims are driving up renewal rates for employers with fixed budgets. Add in rising specialty drug costs, the increased prevalence of chronic conditions, and hospital pricing changes, and the affordability of providing employee health benefits is more difficult than ever.
Manufacturers also have varying workforce demographics. A single organization may employ production workers, maintenance technicians, engineers, supervisors, sales teams, and corporate staff who all have different ages, healthcare needs, and family situations. Yet traditional group plans typically offer only one or two plan options for everyone.
An ICHRA solves these challenges by allowing employers to provide a flexible, tax-free health benefit while giving employees the freedom to choose the coverage that works best for them, giving everyone more control over their finances and healthcare.
The advantages of an ICHRA for manufacturing companies
Between rising healthcare costs, labor shortages, various employee types, and multi-state facilities, many manufacturers need a health benefit that's more flexible and financially sustainable than traditional group coverage.
Luckily, the ICHRA is a tax-advantaged tool that can support your staff and benefit without sacrificing the quality or value.
Better benefit cost predictability
Manufacturing businesses have structured budgets, making unexpected healthcare increases impractical. An ICHRA replaces annual insurance rate hikes with a fixed monthly contribution determined by the employer at the beginning of each plan year.
The ICHRA doesn’t rely on a one-size-fits-all contribution strategy. There are no minimum or maximum limits, so employers can contribute whatever amount of money that works best for their budget. At the end of the plan year, they can raise or lower their contributions based on goals, finances, and employees’ needs.
You don’t have to guess what a competitive contribution looks like. Our 2026 National ICHRA Report pulled real contribution data from manufacturers already on our ICHRA+ and PeopleKeep ICHRA platforms, and our team works alongside you to create a custom contribution strategy based on your needs, demographics, and location.
According to Remodel Health's 2026 National ICHRA Report, manufacturing employers contribute an average of:
Improved employee recruitment and retention
These days, job seekers and employees in the manufacturing industry expect competitive benefits alongside competitive wages. An ICHRA gives employees the flexibility to choose their own health coverage instead of accepting a one-size-fits-all group plan. Offering personalized health benefit options where employees have direct control over their insurance and healthcare can help manufacturers attract qualified candidates while improving overall retention.
Support for both hourly and salaried employees
Manufacturing workforces rarely fit into a single category. Hourly production employees, engineers, plant managers, and corporate staff often have different healthcare priorities. An ICHRA allows employers to design contribution strategies using employee classes, ensuring benefits stay fair but competitive while reflecting the needs of different types of workers.
Simplified benefits administration
Managing annual renewals, carrier negotiations, employee enrollments, and compliance requirements takes up valuable HR resources and time. With Remodel Health, manufacturing companies gain a dedicated partner that manages plan design, implementation, the enrollment process, and compliance. With these tasks taken off your plate, your HR teams can spend less time managing health benefit plans and more time supporting employees.
Why manufacturing businesses partner with Remodel Health
Successfully transitioning from employer-sponsored group health insurance to an ICHRA requires more than software. It requires an experienced partner with a history of supporting employers and their employees every step of the way.
That’s why companies across the manufacturing industry are turning to Remodel Health for a more flexible approach to health benefits. Our 2026 National ICHRA Report found that manufacturing is one of the top five industries using Remodel Health's ICHRA+® platform by revenue.
Whether you’re a mid-sized manufacturer or a large multi-location organization, here’s what you can expect from Remodel Health when you choose us to design, implement, and administer your ICHRA:
- Our team works closely with manufacturing leaders, HR departments, and benefits brokers to design customized strategies that reduce healthcare costs while improving the employee experience.
- Our implementation specialists manage every phase of the transition, including contribution strategy development, employee education, enrollment support, compliance, and ongoing administration.
- Employees with complex medical situations receive assistance from licensed benefits advisors who help them compare plans, understand provider networks, evaluate healthcare coverage, and enroll in the policy that's right for them and their families.
- Manufacturing employers also benefit from Remodel Health's innovative platform, which includes automated premium payments, ongoing compliance management, reporting capabilities, payroll integrations with more than 200 HRIS and payroll systems, and dedicated customer support.
Whether you're replacing an expensive group health plan or building an employee benefits strategy for the future, Remodel Health helps manufacturers design an ICHRA that will grow as their company grows.
Operational excellence
- 99%+ Autopay payment accuracy
- Overdraft protection for payments
White-glove service
- Licensed Benefit Advisors
- 4+ year client tenure
Market leadership
- Serving 100,000+ members
- 200+ HRIS integrations
- Only profitable ICHRA administrator
Support your team with a personalized ICHRA by Remodel Health
Manufacturing employers don't have to continue absorbing unpredictable group plan premium increases every year. With an ICHRA, your organization can control healthcare spending, improve recruitment and retention, and offer personalized health benefits that actually meet the needs of both hourly production employees and salaried staff.
Talk with Remodel Health to learn how a customized ICHRA strategy can help manufacturing companies reduce benefit costs and foster a healthier, more satisfied workforce.
FAQs
How can an ICHRA help manufacturing businesses attract and retain employees?
An ICHRA gives employees the freedom to choose the individual health insurance plan that best fits their doctors, prescriptions, and family needs. Offering personalized, tax-free health benefits can help manufacturers remain competitive in today's labor market while improving employee satisfaction and retention.
Can an ICHRA support both hourly and salaried manufacturing employees?
Yes. Manufacturers can customize ICHRA contributions using eligible employee classes, allowing them to design benefits that support different groups of workers, such as hourly production employees, salaried office staff, managers, or employees working in different geographic rating areas. This flexibility helps employers offer a competitive employee benefits package while still focusing on cost control.
Is an ICHRA a good fit for manufacturers with multiple locations?
Yes. An ICHRA is especially beneficial for manufacturers operating multiple plants or facilities because employees can choose individual health plans available in their local area. Remodel Health helps employers implement a consistent benefits strategy across locations while giving employees have they flexibility to select their preferred coverage, regardless of where they live or work.
Why should manufacturing companies choose Remodel Health for an ICHRA?
Remodel Health combines industry-leading ICHRA technology with white-glove service to help manufacturers transition away from costly group health insurance. We simplify the most complex parts of ICHRA administration, including implementation, employee communications, enrollment support, compliance requirements, and automated premium payments. Our technology also integrates with more than 200 payroll and HRIS systems, helping reduce the administrative burden for HR teams.
From plan design to year-round administration, our team manages every step so employers can focus on running their operations instead of managing health benefits.
Earning accolades in innovation
Our innovative approach to health benefits through ICHRA has been recognized with numerous awards. Check out our accolades below, which serve as a testament to our commitment to revolutionizing health benefits.
