Health insurance has always been one of the toughest challenges for small and medium-sized businesses. Traditional group health plans are expensive, restrictive, and often unsustainable—locking employers into unpredictable premium increases and one-size-fits-all coverage that rarely fits anyone perfectly.
That’s why ICHRAs—Individual Coverage Health Reimbursement Arrangements—are rapidly transforming how businesses approach health benefits. What started as an alternative has quickly become the go-to solution for employers who want cost control, flexibility, and employee satisfaction without the headaches of traditional group insurance.
At Benni, we specialize in helping both brokers and employers implement ICHRAs seamlessly. Our approach is simple: we do all the heavy lifting—designing, presenting, customizing, educating, and administering the program—while employers gain a modern, affordable benefit and brokers maximize their revenue with little extra work.
What Is an ICHRA and How Does It Work?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is an IRS-approved benefit model that allows employers to reimburse employees tax-free for their individual health insurance premiums and qualified medical expenses.
Instead of offering a traditional group health plan with unpredictable costs and limited flexibility, employers simply set a fixed monthly allowance. Employees then use those funds to purchase ACA-compliant health plans that work best for them and their families.
Here’s how the process works:
Employers decide the monthly reimbursement amount based on their budget and employee classifications. You have complete control over how much to contribute.
Employees purchase their own individual health insurance on or off the marketplace, choosing plans that fit their specific needs, preferred networks, and family situations.
Employees submit proof of coverage to receive their monthly reimbursement through a simple, streamlined process.
Reimbursements are tax-free for both employers and employees, making this an efficient use of benefit dollars.
This model shifts the financial unpredictability of group insurance into a stable, controlled reimbursement approach—giving employers meaningful health benefits while maintaining completely predictable budgets.
Why Small and Medium-Sized Employers Are Choosing ICHRAs
For many small and mid-sized businesses, offering health insurance has always felt out of reach or financially risky. ICHRAs change that equation entirely, making competitive health benefits accessible and sustainable.
Complete Cost Control
The biggest advantage of ICHRAs is budget predictability. Instead of facing surprise premium increases at renewal, you decide the exact monthly allowance and keep your benefits spending completely controlled. Your costs stay stable year after year, allowing for accurate financial planning.
Flexibility Across Your Workforce
ICHRAs allow you to offer different reimbursement levels based on employee classifications such as full-time versus part-time workers, salaried versus hourly staff, seasonal employees, or workers in different geographic regions. This flexibility means you can design a benefits strategy that matches your actual workforce rather than forcing everyone into the same box.
Employee Freedom and Satisfaction
Instead of being stuck with a one-size-fits-all group plan, employees get to choose coverage that actually works for them. They can select based on their preferred doctors and networks, budget considerations, dependent needs, and location. This personalization leads to higher satisfaction and stronger appreciation for the benefit you’re providing.
Scalability as You Grow
Whether you have five employees or fifty, ICHRAs work. As you hire new team members, you simply enroll them in the reimbursement policy—no need to renegotiate group premiums or worry about minimum participation requirements. The benefit scales naturally with your business growth.
Compliance with ACA Requirements
When structured correctly, ICHRAs help employers meet ACA employer mandate requirements while maintaining budget control. This gives you peace of mind that you’re offering compliant, meaningful coverage.
Stronger Recruitment and Retention
Employees genuinely value the freedom of choice and the financial support toward their healthcare. In competitive hiring markets, offering an ICHRA demonstrates that you care about your team’s wellbeing and trust them to make their own healthcare decisions.
Why ICHRAs Are a Game-Changer for Brokers
If you’re a broker, ICHRAs represent one of the fastest-growing opportunities in the benefits world. Embracing this solution gives you a major competitive advantage and opens doors that traditional group plans cannot.
Expand Your Market
ICHRAs allow you to serve small businesses that previously couldn’t afford group coverage. You’re no longer limited to larger employers with substantial budgets—you can now help the entire small business market access quality health benefits.
Retain Cost-Conscious Clients
When clients struggle with rising group premiums, you have a powerful alternative to offer instead of watching them drop coverage entirely. ICHRAs keep those relationships intact while solving their cost concerns.
Flexible Offerings for Diverse Workforces
Every employer’s team is different. With ICHRAs, you can tailor contributions and plan design to fit each client’s unique situation, demonstrating your value as a strategic advisor rather than just a policy seller.
Increased Revenue Opportunities
More clients means more commissions, especially when you can serve markets that were previously inaccessible. With Benni handling the implementation and administration, you generate revenue without proportionally increasing your workload.
How Benni’s White-Glove Broker Support Works
At Benni, we know brokers are the trusted advisor. That’s why our support model is designed to make you look great while we handle the complex details behind the scenes.
We Present for You – Our team can join client meetings, deliver compelling presentations, and explain ICHRAs in simple, accessible terms that resonate with business owners.
We Customize Solutions – Every employer’s workforce is different. We design personalized ICHRA strategies that align with their specific goals, budget, and employee demographics.
We Handle the Heavy Lifting – From initial setup to ongoing administration, compliance management to employee education, we do it all. You never have to become an ICHRA expert to offer ICHRA solutions.
We Educate Employees – Through one-on-one meetings and group sessions, we ensure employees understand their options and value the benefit. This is where many ICHRA implementations fail—we make sure yours succeeds.
You Get the Credit – Brokers maintain the client relationship, receive commissions, and keep clients happy while Benni does the behind-the-scenes work. You’re the hero, we’re the engine.
This white-glove approach means you never risk losing a client because you don’t have a solution. Instead, you gain a competitive edge by offering cutting-edge benefits without adding burden to your practice.
The Employee Experience with ICHRAs
Employees are the ultimate winners with ICHRAs. Instead of accepting whatever group plan the employer chooses, they get real choice and control over their healthcare.
Freedom to Choose the Right Plan – Employees can pick from ACA-compliant individual plans on or off the marketplace, selecting coverage that includes their preferred doctors, fits their budget, and meets their family’s specific needs.
Portability and Security – Individual plans stay with employees even if they change jobs, providing continuity of care and eliminating gaps in coverage during job transitions.
Financial Support That Matters – Employer reimbursements help cover premiums and eligible out-of-pocket costs, making quality health insurance affordable and accessible.
Transparency and Understanding – With Benni’s education and support, employees know exactly what they’re getting, how much it costs, and how to use their benefits effectively.
When employees understand and value their benefits, they’re more engaged, more loyal, and more productive. That’s the ICHRA difference.
Why Benni Makes ICHRAs Simple
ICHRAs are powerful, but they can feel complex—which is why many traditional agencies avoid them. At Benni, we lean in. We’ve built the technology, expertise, and human support to make ICHRA implementation genuinely seamless.
Advanced Technology Platform
Our free platform manages allowances, reimbursements, compliance, and reporting automatically. Employers and brokers get real-time visibility without manual paperwork or spreadsheet tracking.
Genuine Human Support
Technology alone isn’t enough. We meet with employees one-on-one and in group settings to answer questions, guide decision-making, and ensure everyone feels confident about their coverage choices.
True Broker Partnership
We don’t compete with brokers—we empower them. Brokers receive credit, commissions, and client loyalty while we handle implementation and administration. It’s a true partnership model.
Future-Proof Benefits Strategy
As ICHRAs continue growing in popularity and regulatory support, working with Benni keeps employers and brokers ahead of the curve rather than playing catch-up.
The Future of Health Benefits Is Here
Traditional group health insurance is increasingly unsustainable for small and medium-sized businesses. Rising costs, limited flexibility, and administrative complexity are pushing more employers toward alternative solutions.
ICHRAs represent the future of employer-sponsored health benefits—giving businesses cost control, employees genuine choice, and brokers a powerful tool to win new business without added burden.
At Benni, we make this future accessible today. We provide the white-glove experience brokers need and the technology and consulting employers demand. With us, brokers grow their business, employers control their costs, and employees gain real healthcare freedom.
Ready to Transform Your Benefits Strategy?
Whether you’re an employer tired of unpredictable group plan costs or a broker looking to serve more clients with cutting-edge solutions, ICHRAs offer a powerful path forward.
At Benni, we make implementation simple, compliant, and employee-friendly. Our technology platform handles the complexity while our team provides the human touch that makes benefits programs actually work.
Schedule a consultation today to learn how ICHRAs can transform your approach to health benefits. Let’s build a solution that gives you control, your employees choice, and everyone peace of mind about the future of healthcare benefits.
Frequently Asked Questions
What is an ICHRA?
An ICHRA (Individual Coverage Health Reimbursement Arrangement) is an IRS-approved benefit that lets employers give employees a set monthly allowance to purchase their own individual health insurance instead of offering a traditional group plan. Employees pick plans that fit their needs and get reimbursed tax-free for premiums or eligible medical expenses up to the allowance amount.
Who can use ICHRAs and what's required?
Any size employer can offer an ICHRA, from small businesses with just a few employees to large organizations. Employers must define employee classes, set reimbursement allowances, provide required notices, and verify that employees have individual coverage. Benni’s platform handles all these requirements automatically, ensuring compliance without administrative headaches.
Why choose ICHRA over traditional group plans?
ICHRAs offer predictable costs (you set the exact budget), complete flexibility (customize by employee class), no minimum participation requirements, employee choice (workers pick their own plans), scalability (works for businesses of any size), and simplified administration (especially with platforms like Benni handling the details). For businesses struggling with rising group premiums or limited plan options, ICHRAs provide a sustainable alternative.
How do reimbursements work?
Employees purchase their own ACA-compliant health insurance, then submit proof of coverage through Benni’s platform. Reimbursements are processed automatically up to the employer’s set allowance amount and paid tax-free. The entire process is streamlined and requires minimal effort from HR teams.
Can employees choose any health plan?
Employees can choose any ACA-compliant individual health insurance plan, whether purchased on the marketplace or directly from carriers. This gives them access to hundreds of plan options rather than being limited to the one or two plans typically offered in group settings.
What happens when employees change jobs?
Because employees own their individual health insurance policies, they can keep their coverage when changing employers. This portability is a significant advantage over group plans, which end when employment ends.
How does Benni support ICHRA implementation?
Benni provides complete white-glove service including initial plan design, employer and employee education, platform setup, ongoing compliance management, reimbursement processing, and continuous support. For brokers, we handle presentations, customization, and administration while you maintain the client relationship and receive commissions.
Are ICHRAs compliant with the Affordable Care Act?
Yes, when properly structured, ICHRAs satisfy ACA employer mandate requirements. Benni ensures your ICHRA design meets all regulatory requirements, protecting you from compliance risks.