The Rise of ICHRA: How platforms are driving Individual Enrollment and Employer Adoption
The way employers offer health benefits is changing, and fast. At the center of this shift is the Individual Coverage Health Reimbursement Arrangement (ICHRA), a model that allows employers to fund health benefits without being tied to a one-size-fits-all group plan. Instead, employees receive a fixed-dollar amount to purchase individual health coverage that meets their needs.
ICHRA adoption is growing rapidly—at a 60% year-over-year pace—particularly among large employers. With several key players securing funding in 2025 and profitability milestones expected in 2026, this movement is not slowing down. But as promising as ICHRA is, its success hinges on one critical factor: individual enrollment, and ICHRA platforms are at the center of making that process seamless.
Why Individual Enrollment is the Key to ICHRA’s Success
Unlike traditional group plans, where employees enroll in a plan chosen by their employer, ICHRA shifts the responsibility of plan selection to the individual. This unlocks a new level of personalization, but it also introduces challenges. Employees need guidance, education, and tools to make informed decisions—without feeling overwhelmed.
This is where ICHRA platforms play a crucial role. By providing an intuitive experience, robust quoting tools, and streamlined enrollment workflows, these platforms ensure that employees can confidently select and enroll in the right plan. The easier it is for employees to compare plans, understand benefits, and complete enrollment, the more effective ICHRA becomes.
The Role of ICHRA Platforms in Driving Adoption
Technology is the backbone of ICHRA, and ICHRA platforms are leading the charge in transforming how employers and employees navigate this model. Many of the top ICHRA platforms rely on Ideon’s quoting solutions to provide real-time, accurate rate comparisons, making it easier for employees to shop for coverage. This technology ensures a seamless experience, eliminating the confusion that often comes with selecting an individual plan.
Remodel Health, a major player in the ICHRA space, exemplifies how technology enhances individual enrollment. By leveraging Ideon’s quoting engine, Remodel Health provides employers and employees with intuitive, data-driven tools to navigate the complexities of the individual market.
For ICHRA platforms, the opportunity is clear: Those that offer the most frictionless experience will drive the highest adoption rates, secure stronger partnerships, and emerge as market leaders.
The Critical Role of Brokers and ICHRA Platforms
Brokers remain a pivotal force in the success of ICHRA, but their role is evolving. ICHRA platforms that equip brokers with user-friendly quoting and enrollment tools will gain a strategic advantage. Brokers are trusted advisors, and by partnering with ICHRA platforms that simplify plan selection, they can more effectively guide both employers and employees through the transition.
For ICHRA platforms, this presents a major growth opportunity. By offering broker-friendly tools that integrate quoting, compliance support, and plan recommendations, platforms can position themselves as indispensable partners in the benefits ecosystem.
Challenges ICHRA Platforms Can Help Solve
While ICHRA presents a massive opportunity, success isn’t guaranteed. ICHRA platforms can differentiate themselves by addressing three key challenges:
Employee Education: Many employees are unfamiliar with how to shop for individual health plans. Platforms must invest in UX design, decision-support tools, and educational content to build confidence in plan selection.
Seamless Enrollment: The process must be as simple as possible. Platforms that integrate quoting, plan comparison, and enrollment into a single, intuitive experience will lead the market.
Regulatory Considerations: ICHRA is still evolving, and compliance is critical. Platforms that proactively address affordability, plan availability, and reporting requirements will gain employer trust.
The Future of ICHRA Platforms
As more large employers embrace ICHRA and individual enrollment becomes the norm, ICHRA platforms will continue to drive innovation in quoting, plan selection, and benefits administration. Carriers are already exploring ways to bring ICHRA tools in-house, and acquisitions of ICHRA-focused companies are likely on the horizon.
For ICHRA platforms, the time to act is now. The winners in this space will be those that create the most intuitive, scalable, and broker-friendly solutions to power the next wave of employer-sponsored healthcare.
With competition heating up, the platforms that prioritize ease of use and broker support will lead—where does yours stand?