How to switch ICHRA administrators: A step-by-step guide

As more employers adopt the individual coverage health reimbursement arrangement (ICHRA), many are learning that the right administrator makes a big difference in the success of their benefits strategy.

For employers and their benefits consultants looking to manage rising healthcare costs, control insurance premiums, and create more flexibility, choosing the right health benefit solution and partner is key.

Whether you're dealing with enrollment challenges, billing issues, or limited support with your current ICHRA partner, switching ICHRA administrators is possible. The right administrator can help reduce administrative load, improve employee satisfaction, and create a better benefits experience.

In this article, we’ll cover what employers should consider when moving from one administrator to another.

In this blog post, you'll learn:

• How to evaluate the timing of an ICHRA administrator transition.
• What information you need to gather before switching administrators.
• How to choose the right long-term ICHRA partner.

Midyear vs. end-of-year transitions

One of the first decisions employers and broker consultants need to make is when to transition to a new individual coverage HRA (ICHRA) administrator.

A midyear transition allows employees to keep their current individual health plans while the employer changes third-party administrators (TPAs) or ICHRA platforms. This requires coordination around enrollment data, compliance, and payments to ensure a seamless transition.

Employers should also consider how a transition impacts their plan design, including contribution strategies, employee classes, and how benefits are communicated to employees. Clear communication can improve employee engagement and help employees better understand their coverage.

Keep in mind that switching administrators doesn't trigger a special enrollment period (SEP). Employees generally can't change individual health insurance plans simply because their employer changes ICHRA vendors.

An end-of-year transition often lines up with Open Enrollment, when employees are already reviewing their coverage options. However, it can also bring more complexity because employers may be managing several changes at once, including plan elections, dependent updates, and administrator changes.

“Employers need to consider both the employee experience and the administrative requirements when choosing the right timing," said Sarah Hurley, Senior Director of Sales Enablement at Remodel Health.

Hurley said that in some cases, employers are surprised to find their previous administrator provides limited support during a transition.

“Some administrators losing business won't provide full support during a December transition for a January 1 administration change,” Hurley said. “That can add complexity and stress for employers. Having a partner who can bridge that gap is incredibly important.”

Get your enrollment data before making the switch

A smooth transition starts with accurate information. Employers have the right to access their enrollment data and should request a complete download from their current administrator before switching.

Important information to collect includes:

• Employee and dependent information
• Dates of birth
• Current enrollment details
• Member IDs
• Plan IDs (not just plan names)
• On-exchange vs. off-exchange plan information
• Employee contribution amounts
• Employer contribution details
• Payment and reimbursement records

A successful transition also requires careful handling of protected health information (PHI).

“The more information and legwork you have upfront, the smoother and cleaner the transition will be for everyone, especially employees,” Hurley said.

Employers should request a complete enrollment file so the new administrator has what they need to support the group. They should also gather any relevant legal documents, plan materials, and historical records that may help the new administrator understand the current setup.

Expect a transition partner to find opportunities for improvement

Employers tend to stick with their ICHRA administrators when things go right. They usually make a change because they're experiencing ongoing challenges managing enrollments, payments, or employee medical expenses, or have had trouble getting support from their current ICHRA partner.

During the transition process, a new administrator may uncover issues that need to be fixed, such as:

• Employees receiving pre-tax deductions while enrolled in on-exchange plans
• Under the ICHRA Final Rules¹, you can only establish pre-tax payroll deductions for off-exchange plans
• Medicare-eligible individuals enrolled incorrectly
• Payroll deductions occurring without active coverage
• Enrollment discrepancies
• Payment errors

Identifying these issues early can help prevent employee frustration, reimbursement delays, or a potential coverage gap.

“When we take over business, it’s not uncommon for us to find errors,” Hurley said. “That’s often why employers come to us in the first place. Whatever pain they’re experiencing, our goal is to guide them through it and get them back to stable ground.”

A strong transition partner should identify issues, explain what happened, and help create a path forward.

Understand the carrier and payment process

Every carrier and insurance provider has different enrollment and payment processes. Some are simple. Others require more coordination.

Before making a switch, employers and brokers should allow their new administrator to complete due diligence. This helps ensure proper compliance management and creates a clear transition plan.

This helps everyone understand:

• What the transition will involve
• What can be improved
• What challenges may exist outside the administrator’s control
• What alternatives may be available

“We want to be transparent about what we can improve versus what may be a carrier-related challenge outside of our control,” Hurley said. “Our job is to tell employers what to expect and help them make informed decisions.”

Payment management is another important part of any transition. Many employers move administrators after experiencing reimbursement or payment issues.

“The payment portion of a transition is something many groups don’t think about until they experience a problem,” Hurley said. “How and when we execute the payment takeover matters. We partner with employers, communicate clearly, and guide them through every step.”

Accurate payment administration is also important because ICHRA contributions are typically provided through tax-free funds when properly structured and administered according to applicable rules.

Choose an ICHRA administrator built for long-term success

While cost matters, choosing an ICHRA vendor based on price alone can create bigger challenges later. Many vendors with a low price point use AI and technology to help administer the ICHRA benefit. However, they don’t have the staffing or resources to prevent or address problems.

“Often we see organizations choose a cheaper provider, only to find that enrollment, payments, and administration aren’t being managed correctly,” Hurley said. “The time and stress spent fixing those issues can outweigh the initial savings.”

Employers moving from a traditional group health insurance plan to an ICHRA, or switching between administrators, need a partner that can support enrollment, automatic payments, and the overall employee experience.

This is especially important for employers navigating applicable large employer (ALE) requirements and the employer mandate. A knowledgeable ICHRA administrator can help employers manage compliance obligations, stay informed about regulatory updates, and ensure their benefits strategy aligns with applicable rules.

The right solution can improve cost control, provide more flexibility around individual health insurance options, and help employees find coverage that fits their needs.

A strong partner should make benefits easier to manage, not harder.

Switching to Remodel Health

At Remodel Health, we help employers transition smoothly from other administrators. We work with employers, brokers, and insurance providers to understand their current setup, identify challenges, and create a transition plan that works. Our ICHRA takeover clients say they appreciate the improved support, communication, and confidence they gain after switching to our ICHRA+ platform.

According to our 2026 National ICHRA Report, from 2024 to 2025, we saw a 137% increase in businesses transitioning to us from another ICHRA vendor. We also have a 93% win-rate when organizations consider us versus another vendor when changing ICHRA administrators.

With Remodel Health, you get:

• Deep industry expertise, with more than a decade of experience with individual health plans and HRAs
• Expert white-glove support
• Full-service compliance assistance
• Reliable premium payments

Learn more about switching to Remodel Health.

Conclusion

Switching individual coverage HRA (ICHRA) administrators doesn’t have to be complicated. With the right planning, accurate enrollment data, and a partner who understands ICHRA transitions, employers can make the move with confidence.

If you’re considering switching to Remodel Health, our team is ready to help you evaluate your current setup and build a transition plan that works for your organization.

This article was originally published on August 1, 2024. It was last updated on July 26, 2026.

References

1. ICHRA Final Rules