Most popular individual health insurance options with ICHRA

Health insurance has traditionally been a one-size-fits-all benefit. Employers pick or self-fund a group health plan, employees enroll in the same coverage, and individual preferences often take a back seat.

The individual coverage health reimbursement arrangement (ICHRA) changes that model. With an ICHRA, employees receive a tax-free employer contribution they can use toward an individual health insurance policy that works best for them.

One misconception of ICHRA is that employees will choose the cheapest individual coverage available to them, potentially leaving them with inadequate coverage or high deductibles. However, our customer data shows a different reality.

According to Remodel Health's 2026 National ICHRA Report, employees are taking advantage of that flexibility. Rather than automatically choosing the lowest-cost option, they're choosing plans based on the coverage, provider networks, and benefits that align with their unique needs.

In this article, we'll look at which types of individual health insurance plans employees are choosing most often with ICHRA.

In this blog post, you'll learn:

• Why employers are choosing ICHRA over a traditional group health plan.
• How employees choose between metal tiers and network types.
• Why employee choice is becoming a key advantage of ICHRA.

What is ICHRA, and how does it work?

An individual coverage health reimbursement arrangement (ICHRA) is an employer-funded health benefit. Instead of purchasing a traditional group health plan, employers set a monthly contribution amount, and employees choose the individual health insurance plan that works best for them.

Here's how it works:

• The employer designs the benefit. Employers determine which employees are eligible, using 11 types of employee classes, such as full-time or part-time, or geographic location. Then, they set monthly contribution amounts.
• Employees choose individual plans. Eligible employees enroll in qualified health plans. They can buy a plan through the Health Insurance Marketplace, a state marketplace, or directly from an insurance company or private exchange. Employees must maintain qualifying individual health coverage to participate in an ICHRA.
• Employees pay for their healthcare coverage. Employees use employer contributions to pay for their individual health insurance premiums.

An ICHRA offers an affordable alternative to a traditional group insurance plan, especially for groups facing double-digit group premium increases. It can also satisfy the Affordable Care Act's (ACA) employer mandate for applicable large employers (ALEs).

About Remodel Health's 2026 National ICHRA Report

As the leading ICHRA administrator by revenue, Remodel Health supports more than 140,000 members across our HRA products. Our 2026 National ICHRA Report analyzes the industry's largest vendor-specific dataset, providing insights into employer contributions, employee plan selections, carrier payments, and more.

Backed by real-world enrollment data from our ICHRA+ and PeopleKeep products, the report gives employers, brokers, and industry leaders a clear picture of how organizations are adopting and implementing ICHRA across the country.

How employees choose between different metal tiers

Individual plans are categorized into metal tiers: bronze, silver, gold, and platinum. These tiers represent the plan’s actuarial value (AV), or the percentage of healthcare expenses it covers on average.

Generally:

• Bronze plans have lower monthly premiums but higher out-of-pocket costs.
• Silver plans provide a balance between monthly premiums and medical expenses.
• Gold plans have higher premiums but lower costs when receiving care.
• Platinum plans have the highest premiums and the lowest cost-sharing.

There are also catastrophic plans. These plans have low premiums but high deductibles, and are generally only available to those younger than 30 or those who qualify for a financial hardship or affordability exemption.

Because individual market rates vary based on factors like age, location, and plan availability, employees evaluate their options differently and choose coverage that provides the best overall value.

Metal tier selection among Remodel Health ICHRA+ members

The employee data shows a relatively even distribution across bronze, silver, and gold plans, with a slight preference toward higher-value coverage.

Bronze plans remain a popular choice, particularly among employees who want lower premiums or can benefit from pairing their plan with a health savings account (HSA). As of 2026, all on-exchange bronze and catastrophic plans, along with their mirrored off-exchange versions, are HSA-eligible. This gives cost-conscious employees another way to maximize the value of their health benefits by pairing lower premiums with tax-advantaged savings for future medical expenses.

Most popular individual health plans selected with ICHRA

Across Remodel Health's ICHRA+ platform, employees select a combined average of 14 different health plans per organization. This ranged from a single plan for our least complex customer to more than 530 unique plans for our most complex customer. In contrast, traditional group health plans typically offer employees a single employer-selected option. Available plan options and insurance premiums vary by rating area, making plan selection unique to each employee.

Most commonly selected plan types by ICHRA+ members

We examined the most popular metal level and plan type combinations selected by ICHRA+ members.

The distribution of plan selections shows that employees are making intentional decisions based on their individual healthcare needs, not simply choosing the lowest-cost option.

"The data validates a simple truth: when given a choice, employees prioritize what matters most to them. With multiple generations in today's workforce, priorities vary,” said Sarah Yi, VP of Sales, West at Remodel Health. “Some employees solve for cost, others for coverage, and ICHRA is flexible enough to support either.”

The most popular plans show that employees are prioritizing more than just monthly insurance premiums. Gold copay plans, bronze HSA plans, and silver copay plans make up the majority of selections. This reflects different employee priorities around predictable healthcare costs, savings opportunities, and overall coverage.

Most popular health insurance networks with ICHRA

Beyond plan costs and coverage levels, provider networks play an important role in employee plan decisions. Employees often consider whether their preferred doctors, hospitals, and specialists are included before selecting coverage.

Among ICHRA+ platform members, the most common network types were:

HMO plans were the most commonly selected network type, followed by EPO plans. Together, these two network types accounted for nearly 80% of employee selections.

This distribution also reflects the broader individual market, where HMO and EPO plans are often more widely available than PPO options. Even so, employees still have the flexibility to prioritize network access if keeping their current providers is important.

Top ICHRA plan combinations by metal tier and network type

When combining metal tiers and network types, the most popular plan combinations among ICHRA+ members were:

These combinations highlight the flexibility employees gain through ICHRA. Some employees prioritize lower premiums with bronze plans, while others choose gold or silver plans for stronger coverage and predictable healthcare costs.

Where employees purchase their health insurance with ICHRA

In addition to choosing a plan type, metal tier, and provider network, employees must also decide where to enroll in their individual health insurance coverage. With ICHRA, employees can purchase plans either on or off the Health Insurance Marketplace.

Among members across Remodel Health's ICHRA platforms, 57% selected an off-exchange plan, while 37% enrolled in an on-exchange plan. On-exchange plans were most popular among PeopleKeep customers, whereas off-exchange plans were more popular with ICHRA+. This is because employers can establish pre-tax payroll deductions for an employee’s share of the premium for off-exchange plans through ICHRA+.

The remaining 6% chose Medicare coverage.

Employees who are eligible for Medicare can use an ICHRA to help pay their Medicare premiums, making the benefit a flexible solution for employees at different stages of their healthcare journey. Employees can participate in ICHRA if they have Medicare Parts A and B together or Medicare Part C.

When you work with Remodel Health, our Medicare experts provide personalized enrollment support to help eligible employees understand their options and choose the coverage that works for their situation.

Offering an ICHRA with Remodel Health

While ICHRA gives employers more flexibility, successfully implementing and managing the benefit requires the right technology, expertise, and ongoing support.

Remodel Health’s software platform helps employers design, launch, and manage ICHRA benefits with ease. As the nation's leading individualized benefits administrator, Remodel Health helps employers set contribution strategies, support employee enrollment, simplify administration, and navigate compliance requirements.

By combining technology with personalized support, Remodel Health makes it easier for employers to offer flexible, employee-focused health benefits while reducing the complexity of managing an ICHRA.

Conclusion

Data from Remodel Health's 2026 National ICHRA Report shows that when employees are given the freedom to choose their own health insurance, they don't all make the same decision, and that's exactly the point. Some prioritize lower premiums, while others prefer richer coverage or broader provider networks. But nearly everyone benefits from having the flexibility to choose the plan that best fits their needs.

This article was originally published on Nov 15, 2022. It was last updated on July 14, 2026.