A first of its kind report about how Individual Coverage Health Reimbursement Arrangements are perceived by both employers and benefits consultants reveals an evolving market that has plenty of room to grow.
In fact, despite ICHRAs offering an alternative to traditional group health insurance, employer awareness gaps persist. According to the inaugural “2025 ICHRA Report – How Employers and Benefits Consultants View ICHRA Today: 5 Key Insights” from ICHRA technology and services provider zizzl health, 46% of employers not offering ICHRA have never even heard of it. What’s more, only 27% of those who do know about ICHRA learned about it from their benefits consultant. The report also found that employers are open to learning about ICHRA, particularly when “proactive education” is provided.
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The report is based on online survey results from nearly 500 employers and benefits consultants.
Results are “characterized by limited employer knowledge, high employee satisfaction, and a distinct advantage for benefits consultants who proactively lead the ICHRA conversation,” according to the report.
The report’s four other key insights:
• Benefits consultants generally understand ICHRA better than their clients. But that knowledge isn’t always shared in ways that drive action or adoption.
• The benefits of ICHRA are increasingly clear. They include cost savings and employee satisfaction, although misconceptions and perceived complexities persist.
• Proactive benefits consultants make a difference. Their engagement with clients about ICHRA leads to greater employer satisfaction.
• ICHRA adoption is on the rise. That means benefits consultants who don’t embrace this alternative and present it to employers risk falling behind in an increasingly competitive marketplace.
“Together, these findings offer a roadmap for benefits consultants to add value, for employers to make informed decisions, and for the industry to continue progressing toward broader acceptance and smarter health care solutions,” the report concludes.
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