Employer adoption of ICHRAs is up 29% since 2023, according to a May 16 report from the HRA Council.
ICHRAs, or individual coverage health reimbursement arrangements, allow employers to offer a defined tax-advantaged contribution used to reimburse premiums for an individual health plan purchased by an employee on their state's ACA exchange.
Six key numbers:
1. ICHRA adoption grew 29% year over year between 2023 and 2024.
2. ICHRAs grew 84% among employers with 50 or more employees.
3. Among employers surveyed, 83% were not able to offer health benefits until they offered an ICHRA or Qualifying Small Employer HRA. 17% of employers switched from traditional group coverage.
4.. The number of employees offered a defined contribution health benefit now exceeds 200,000, which does not include dependents — some estimates have said more than 500,000 people are enrolled.
5. 25% of employees choose Silver plans, 34% choose Bronze and 35% choose Gold.
6. Top metros for ICHRA adoption:
- New York City
- Atlanta
- Los Angeles
- San Francisco Bay Area
- Twin Cities, Minnesota