By 2028, 24% of employer-provided plans are expected to be ICHRAs.
| Aspect | ICHRA | Group Health Insurance |
| Cost structure | Employers offer predictable, fixed reimbursements for employees’ individual insurance premiums and qualified medical expenses, providing clear budget control. | Costs depend on premiums, employee participation, and claims. Premium rates tend to increase annually, creating potential financial unpredictability. |
| Flexibility & choice | Employees select individual health plans from the Marketplace or other individual markets, tailoring coverage to their specific needs. | Employees choose from plans preselected by the employer, offering less customization to meet individual healthcare needs. |
| Coverage options | Access to a wide variety of plans through the individual market, including Marketplace options, allowing employees to shop for coverage that fits their preferences. | Coverage is limited to the insurer and plan options selected by the employer, often within a defined network of providers. |
| Portability | Employees keep their individual health insurance plans even if they leave the employer, ensuring continuity of coverage. | Coverage ends when employment terminates, requiring employees to find new insurance or opt for COBRA. |
| Administrative burden | Employers only manage reimbursement amounts, simplifying processes compared to managing a group policy. | Employers oversee policy renewals, premium negotiations, and compliance requirements, which can be resource-intensive. |
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