ICHRA in Indiana

Indiana has become one of the most popular states in the U.S. for individual coverage health reimbursement arrangements (ICHRAs). Thanks to rising group health insurance rates nationwide, more employers are turning to ICHRAs as a flexible, modern alternative to traditional group plans. And due to high carrier participation and growing businesses, Indiana is leading the way in ICHRA adoption and success.

As an Indiana-based company, Remodel Health is eager to help brokers and businesses of all sizes offer a personalized ICHRA that can support all budgets and workforces.

Indiana employers are feeling the pressure from traditional group plans

Indiana business owners and brokers face many challenges when seeking affordable employee health benefits. Several employers are experiencing annual renewal increases of 20%–30% or more on traditional group health plans1. These rate hikes make it difficult to budget effectively or offer competitive employee benefits without sacrificing other business priorities.

Putting cost aside, group plans have requirements and limitations that don’t always work well for employees today. Participation minimums, few coverage options, and inflexible plan designs leave employers stuck with a one-size-fits-all solution. While this structure may work for some, many Indiana organizations with diverse teams may be less than impressed, leaving them to search for alternatives that offer cost control and flexibility, without compromising coverage.

Chapter 1: What is an ICHRA, and how does it work for Indiana employers?
Chapter 2: Why does the ICHRA work so well in Indiana?
Chapter 3: Indiana individual market carriers and health plans for 2026
Chapter 4: ICHRA growth in Indiana
Chapter 5: Why should Indiana business owners work with Remodel Health?
Chapter 6: Indiana employers succeed with ICHRA thanks to Remodel Health

Chapter 1: What is an ICHRA, and how does it work for Indiana employers?

An ICHRA is a flexible, employer-funded health benefit that allows businesses to contribute tax-free money toward their employees’ individual health insurance premiums.

Here’s how it works: Instead of offering a traditional group health insurance plan, employers provide employees with a monthly defined contribution, also called an allowance. To ensure their ICHRA supports their company’s budget and employees’ needs, employers can tailor contribution amounts based on factors such as employee class, age, or family size.

Employees then choose an individual health insurance plan that provides minimum essential coverage (MEC). Once enrolled, employees submit proof of coverage, and the employer contributes to their monthly premium payments up to the set allowance limit. ICHRA contributions are tax-deductible and exempt from payroll taxes for employers, as well as income-tax-free for employees.

With the ICHRA, employers have access to a more predictable and flexible health benefit. At the same time, employees can select the coverage and healthcare expenses that align with their needs and those of their families.

Broad provider networks across the state

Indiana’s individual market offers broad provider access, which is a critical consideration if you’re transitioning from group health insurance. Many available plans include networks that cover most major hospitals and physician groups across the state. This means employees are more likely to find plans that include their current doctors, specialists, and healthcare facilities, reducing disruptions in care and lessening the stress of transitioning to an ICHRA.

Competitive individual market rates

Indiana stands out for having affordable individual market rates, especially compared to similarly sized states in the region. This means employers can offer more attractive contribution amounts, and employees can afford comprehensive health insurance plans without blowing their budgets. With these cost savings, employers can allocate more funds to other operational goals while still giving their employees a benefit that provides value.

Stable insurance carriers

A big advantage of Indiana’s market is its stability and carrier participation. Insurers like CareSource and Ambetter Health have been active in the state since 2015, helping to keep the market consistent and reliable. Recently, Anthem, Cigna, and UnitedHealthcare (UHC) expanded their presence in Indiana, giving consumers more choice and keeping prices competitive.

Additionally, Indiana is a priority ICHRA market for insurance carriers such as Ambetter Health and Anthem, which offer specialized ICHRA plan designs and support. These customized options make it easier for employers and brokers to implement an ICHRA and keep it long-term.

Indiana ICHRA tax credit (House Bill 1004)

Indiana is one of the few states actively encouraging companies to adopt an ICHRA through legislation. Indiana House Bill 1004 introduced a state tax credit for eligible small businesses with fewer than 50 full-time employees who choose to offer an ICHRA instead of a traditional group plan².

The incentive provides up to $400 per employee in the first year and $200 per employee in the second year to help small businesses transition to an ICHRA and offset the cost of providing employer-sponsored health coverage. This tax credit can make ICHRA an even more financially attractive option for small businesses, especially when combined with the long-term cost-saving benefits ICHRA already provides.

Insurance Company

On- or off-exchange

Ambetter Health (from Celtic Insurance Company and Coordinated Care Corporation, subsidiaries of Centene)

On- and off-exchange plans

Anthem Insurance Companies, Inc.

On- and off-exchange plans

CareSource Indiana, Inc.

On- and off-exchange plans

Cigna Health and Life Insurance Company

On- and off-exchange plans

UnitedHealthcare Insurance Company

On- and off-exchange plans

ICHRA adoption is rapidly trending upward across Indiana and the broader U.S. as employers move away from traditional group plans toward more flexible, affordable options.

Here are some key data points showcasing the ICHRA’s growth:

34% year-over-year growth among large employers from 2024 to 2025, with some segments seeing up to 49% growth⁵
52% increase in adoption among small businesses, a key segment in Indiana
ICHRA adoption has increased by over 1000% since 2020
83% of employers offering an ICHRA had not previously offered health insurance coverage
Every county in Indiana has cheaper individual health plan prices compared to small group plans⁶
138.3% year-over-year growth in ICHRA quoting via Ideon from 2024 to 2025

Remodel Health is the largest and most trusted ICHRA administrator in the nation, helping thousands of employers and brokers design, implement, and manage customized ICHRAs.

What sets us apart? Our experience in Indiana! We were founded in Indianapolis in 2015, so we have firsthand knowledge of the state’s insurance carriers, provider networks, and regulatory requirements. At Remodel Health, we understand what works in Indiana and how to tailor ICHRA strategies to ensure success for employers and employees.

What’s more, we care about Indiana. We’re dedicated to seeing the state and our neighbors succeed in their business goals — regardless of whether you’re a small business or a large employer.

We offer a full-service ICHRA+ solution, including:

Personalized plan design and contribution strategy
In-house employee onboarding, education, and support
Assistance for employees with health insurance shopping and individual market navigation
Health insurance premium payments with overdraft protection
Full-service compliance management year-round
Help with tax reporting obligations

Whether you’re a business owner looking to cut your medical costs or a broker searching for a better solution for your clients, Remodel Health’s team and ICHRA+® solution provide the tools, guidance, and experience needed to make an ICHRA work for you.

Small businesses with fewer than 50 employees can also explore an ICHRA with our PeopleKeep brand.

Employers across Indiana are already seeing the advantages of switching to an ICHRA. If you’re not so sure, we have the proof. The case studies below feature Remodel Health clients in Indiana who have successfully transitioned away from traditional group plans and achieved better outcomes with ICHRA.

Indiana employers are feeling the pressure from traditional group plans

What is an ICHRA, and how does it work for Indiana employers?