Empowering nonprofits to offer better health benefits without breaking the budget

With ICHRA+, large nonprofits can control costs, streamline benefits administration, and allow employees to choose plans that work best for them.

Nonprofits often face tight budgets, diverse employee needs, and complex staffing structures. From counseling centers to family services organizations, attracting and retaining top talent means offering competitive benefits. But doing so sustainably can be a challenge.

Traditional group health insurance and self-insured policies are options, but they can be cost-prohibitive and too rigid for nonprofits with diverse workforces. That’s where an individual coverage health reimbursement arrangement (ICHRA) can make all the difference.

With support from Remodel Health, nonprofits can offer meaningful, flexible benefits, all while keeping their costs predictable and aligned with their mission.

Understanding the ICHRA

Since its introduction to employers in 2020, the ICHRA has quickly gained traction as a flexible, cost-effective alternative to traditional group health coverage. While the ICHRA works for organizations of any size and industry, it’s particularly beneficial for large nonprofit organizations. Instead of choosing one group health plan for all your employees, the ICHRA allows your staff to choose their own policy while you stabilize your budget and avoid premium rate hikes due to benefits utilization.

Here’s how the ICHRA works in three easy steps:

You set the budget. First, you decide how much tax-free money to contribute monthly toward your employees’ healthcare. There are no annual limitations, and you can adjust allowances at the end of each plan year. You can also vary the contribution amount by employee class, age, or family size.
1. According to KFF, the average annual group health premium in 2024 was $8,951 for self-only policies and $25,572 for family plans. Employers paid 85% and 75% of these premium costs, respectively. In contrast, Remodel Health’s 2024 ICHRA Report found that applicable large employers (ALEs) provided an average monthly allowance of $448 (or $5,376 annually), significantly reducing financial pressure.
Employees choose health coverage. Employees can shop for and enroll in an individual health insurance plan through a public or private exchange. To participate in the ICHRA, they must choose a qualified health plan with minimum essential coverage (MEC).
Employees pay their premiums with their ICHRA allowance. Employees pay their monthly premium using the tax-free allowance you’ve provided. For example, if you give an employee a $600 monthly allowance and they select an individual health plan with a $600 monthly premium, their ICHRA will fully pay for their coverage. They must cover the difference if their plan costs more than their allowance.

With health insurance costs continuing to climb, ICHRAs are becoming a go-to solution for employers across the U.S. ICHRA adoption grew nearly 34% among large employers between 2024 and 2025. By 2032, the Congressional Budget Office projects that millions of individuals will have health coverage through an ICHRA.

Below, we’ll dive into more reasons why large nonprofits are shifting away from traditional group health coverage to supporting their employees with Remodel Health’s ICHRA+® platform.

Why ICHRA works for large nonprofits

Budget-friendly flexibility

Large nonprofits often have trouble balancing limited budgets with providing enticing health benefits. With an ICHRA, you have the flexibility to determine exactly how much to contribute toward your employees’ health coverage, giving you more control over expenses. Plus, once you choose the amount you want to offer, your employees can’t exceed it.

HRAs also have tax advantages, which ease the financial pressure of nonprofit companies. Employers’ ICHRA contributions are tax-deductible and payroll-tax-free, and allowances are income-tax-free for employees.

Employee empowerment

With the ICHRA, your staff can choose the insurance policy, medical providers, and healthcare costs that best meet their individual needs and those of their families. This personalized approach is especially valuable for nonprofits with diverse teams that include full-time, part-time, and temporary workers.

When employees feel empowered to select the coverage and medical services that work for them, their job satisfaction increases. This can result in a healthier, more engaged staff who feel valued by their employer.

Simplified administration

Managing a traditional health benefit can be time-consuming and exhausting, especially for nonprofits with busy schedules. Plan renewals, compliance requirements, and working with insurer carriers can create extra headaches that you don’t need on your plate. Luckily, Remodel Health’s ICHRA+® solution saves you time and resources, allowing your nonprofit business to focus on its goals instead of navigating the complexities of health insurance.

Our team of experts is standing by to:

Design your ICHRA benefit
Draft legal plan documents and required ICHRA plan notices
Host employee benefit onboarding sessions
Integrate our software solution with your payroll and HRIS systems
Set up AutoPay for your employees’ individual health plan premiums
Provide the necessary data for compliance and tax filings
Help employees compare and enroll in individual health plans (including Medicare)
Track ICHRA benefit spending

Remodel Health provides the support and compliance expertise to ensure your ICHRA benefit runs smoothly all year round.

Improved talent retention

For large nonprofits, retaining great employees is just as crucial as finding them. High turnover in these organizations can be disruptive, especially where trusted relationships and community knowledge make all the difference.

Offering personalized benefits, like an ICHRA, helps nonprofits remain competitive and attractive employers. It not only reduces the costs and challenges of frequent turnover but also ensures you can keep hiring great employees so your nonprofit can continue serving its community to the best of its ability.

Why Remodel Health

Proven experience: With a decade of experience serving nonprofits nationwide, Remodel Health understands the unique challenges of mission-driven businesses and knows how to design benefits that fit various budgets and diverse teams.
White-glove service: From onboarding to ongoing support, your nonprofit will work with a dedicated account manager who will ensure a smooth transition and help your team get the most out of their ICHRA.
Compliance support: Many ICHRA vendors rely on AI tools and their technology platform to keep plans compliant. Remodel Health couples innovative tech with licensed experts to ensure compliance, deliver clarity, and provide support every step of the way.
ICHRA thought leaders: Long before the rise in popularity of the ICHRA, Remodel Health was leading the way in personalized health benefit solutions, bringing innovation and expertise to every organization we serve.

STEP 1

Establish Your Budget and Plan Details

Our platform will guide you through the ICHRA implementation process. This simplified process ensures the creation of a plan that fits your employees’ needs. Determining your budget, reimbursement levels, and launch date is entirely up to you.

Once you have your employee classes and reimbursement amounts set, it’s time to outline the specifics of your ICHRA plan. This includes details such as the plan start date, the reimbursement process, and any rollover rules for unused funds. You’ll also need to develop a written plan document that outlines the ICHRA terms and conditions for your employees. At Remodel Health, we can simplify this complicated process and help you create a plan that fits your employees’ needs.

You’ll need to decide on the monthly allowance you’ll provide for each employee class. This amount will be used by your employees to purchase individual health insurance policies and cover other qualified healthcare expenses. Remember, there is no maximum limit on employer contributions, but you must establish a cap on annual reimbursements for each employee class. Once your ICHRA plan is up and running, you’ll need to manage the reimbursement process. This involves verifying that employees have eligible health insurance coverage and processing their reimbursement requests for qualified healthcare expenses. To streamline this process, Remodel Health’s software offers tools and one-on-one customer support to help you manage your ICHRA plan efficiently.

Effective communication is crucial when implementing an ICHRA. Be sure to provide your employees with clear, comprehensive information about the ICHRA plan, including their eligibility, reimbursement allowances, and instructions for selecting individual health insurance policies. You’ll also need to give employees a notice of the ICHRA offering at least 90 days before the start of the plan year.

STEP 2

We’ll Guide Your Team Through Onboarding and Enrollment

Getting ICHRA enrollment right is crucial for employers and employees. With Remodel Health, you’ll have expert guidance on this topic and an investment in the well-being of your team.

Start by educating your employees about health insurance basics, including terms like deductibles, copayments, out-of-pocket maximums, and provider networks. It’s also important to take the time to explain the options available to your employees. This should include what each plan covers, what it costs, and any other features. Holding annual reviews can give employees the chance to reconsider their coverage options and make changes if necessary. This is also a good time to remind employees about the benefits and resources available to them.

Any size employer can offer an ICHRA to their employees. From small startups to large corporations, ICHRA provides a flexible and personalized health insurance solution. As far as employee eligibility for ICHRA goes, it depends on two key factors: employee class and individual health insurance coverage. Employers can establish different classes of employees and decide which classes are eligible for ICHRA. Additionally, employees must have individual health insurance coverage that meets the minimum essential coverage requirements under the Affordable Care Act.

We will help your employees choose the individual health insurance plan that best suits their needs. Our platform and licensed experts will make this process as seamless as possible.

STEP 3

Enjoy the Advantages of ICHRA

Now, your team can experience this unique and flexible approach to healthcare. With ICHRA, you can take advantage of personalized health insurance options, tax advantages, reduced administrative burden, and so much more.

ICHRAs are more than just a health benefits option – they’re a tool for boosting employee satisfaction. Integrating ICHRA into your benefits package can significantly contribute to elevating employee satisfaction. The mix of autonomy, cost-efficiency, simplified healthcare navigation, and a greater sense of appreciation can create a work environment that employees appreciate and enjoy.

While traditional group health insurance has been the go-to for many years, ICHRAs are definitely making their mark in the benefits landscape. With their flexibility, cost control, tax advantages, and personalization, they offer a compelling alternative for employers. Of course, deciding between ICHRAs and traditional group health insurance isn’t a one-size-fits-all answer. It’s essential to consider the specific needs of your organization and employees in order to find the best solution for your team.

The personalized plan options allow employees to successfully tailor their health benefits to what works best for their unique situations, which ultimately leads to satisfaction among employees. With an ICHRA, the power of managing health benefits is now in the hands of employees.

Empowering nonprofits to offer better health benefits without breaking the budget

Understanding the ICHRA