Why ICHRAs Make Sense for Brokers

Serving and Retaining Clients

Clients rely on you to steer them toward smarter, more cost-effective solutions. ICHRAs represent a unique opportunity to solve some of the most pressing client challenges including the rising costs of traditional group plans and a lack of personal choice for employees. Considering an ICHRA not only serves your client’s interests, it also demonstrates your role as an indispensable partner in an evolving healthcare landscape. And that supports client retention in the long term — even if an ICHRA ends up not being the right move.

Reduced Administrative Tasks

Platforms Streamline Enrollment: Benefit platforms are designed to manage all the administrative complexities of adding employees to different health plans and conducting the transactions required for an ICHRA. That means you’re only stepping in as needed for issues and concerns and have the freedom to focus on higher level consulting needs and take on additional clients.

Minimal Renewal Involvement: While ICHRAs will require some added upfront effort in the first year, there are big efficiencies to be gained in subsequent years. After the initial transition to an ICHRA, renewals require less handholding from the broker, and offer the opportunity to focus your involvement on overarching client strategy and education that turns employees into savvy health plan consumers.

Lucrative & Diversified Revenue

Where the group model is typically commission-based on a percentage of the premium, ICHRAs can allow brokers to benefit from different forms of compensation, including: consulting fees, Per-Employee-Per-Month (PEPM) fees, platform referral revenue, and individual health plan commissions. 

In addition to being diversified, these revenue streams can be as reliable and lucrative as commission-based fees from group health plans. ICHRAs also allow brokers to spend more time creating value in a consultative role than spending time facilitating a transaction.

Consulting services can include:

• Evaluating the viability of ICHRAs for clients
• Making benefit administration platform recommendations
• Educating/supporting the HR team on ICHRA adoption
• Developing contribution strategies / matrices
• Introducing and educating employees
• Preparing and delivering open enrollment presentations
• Helping employees become savvy health plan consumers
• Managing vendor relationships

Expanding Your Market

Over 80% of employers offering ICHRAs have never provided employer-sponsored insurance before* — that means business prospects for brokers have expanded proportionately as well. ICHRAs make it possible to reach more small- and mid-size businesses. They also unlock new market segments like startups, gig-economy employers, and seasonal workforces.” 

Plus, ICHRAs are building momentum. The number of businesses using ICHRAs grew 29% from 2023-2024*.

* Source: HRA Council - Growth Trends ICHRA & QSEHRA