That's why more employers are taking a closer look at Individual Coverage Health Reimbursement Arrangements (ICHRAs) (opens in new tab). Instead of sponsoring one group health plan, employers provide a tax-free contribution employees use to purchase individual coverage that fits their needs. For employers weighing their next renewal, ICHRA could be an option, but there are a few key considerations to weigh before making the move.
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Andrew Reeves
Here are five questions employers and brokers should ask as they evaluate ICHRA.
1. Does your benefits strategy give you financial predictability?
Healthcare costs have long been one of the most difficult business expenses to forecast. Annual renewals can leave employers reacting to premium increases instead of planning for them.
By establishing a defined monthly contribution, the ICHRA model allows employers to align benefits spending with their specific budget needs, securing greater financial predictability without sacrificing their commitment to employee coverage.
"For years, employers have felt like healthcare costs were happening to them instead of something they could actively manage," said Andrew Reeves, general manager of ICHRA at Oscar Health. "ICHRA gives employers a more predictable way to invest in benefits while providing employees more choice. That's a different conversation than most businesses have been able to have."
2. Does your workforce actually need the same health plan?
A growing business might include office employees, remote workers, parents with young children, recent college graduates, and employees approaching Medicare eligibility. Yet traditional group plans typically offer only a handful of choices for everyone.
ICHRA shifts the focus from selecting one plan for an entire workforce to empowering employees to select coverage that fits their own doctors, prescriptions, health needs, families, and preferred networks.
"The modern workforce isn't one-size-fits-all, so benefits shouldn't be either," Reeves said. "When employees can choose the plan, network, and doctors that fit their needs, employers are essentially creating a better benefits experience."
3. Is the individual market strong where your employees live?
An ICHRA is only as strong as the market employees are shopping in. It’s important to consider: How many carriers compete in the market? Are provider networks strong? Are there plans that meet the needs of different employee populations?
"Five years ago, many employers understandably questioned whether the individual market was ready for this kind of role," Reeves said. "Today, the conversation is different. In many markets, employers have access to stronger carrier competition, more plan designs, and better technology to help employees make informed decisions."
That growing competition has encouraged some carriers – including Oscar (opens in new tab) – to build products specifically for individual consumers rather than adapting legacy group plans. Oscar features curated provider networks, and employees can still shop across the broader marketplace if another carrier better fits their needs or location, ensuring they have access to plans designed around how people actually use healthcare.
4. Will the enrollment and overall experience be simple for employees?
Fortunately, the ICHRA ecosystem has evolved beyond reimbursement alone. Enrollment technology, benefits administration platforms, payroll integrations, and digital marketplaces are making it easier for employers to implement ICHRAs and for employees to confidently compare plans.
Platforms like Lucie Health Marketplace (opens in new tab), and others, reflect that broader trend by helping brokers and employers simplify plan shopping while giving employees access to personalized coverage options.
Employees are becoming more comfortable making their own coverage decisions. Eighty-five percent of employees research their health plan options (opens in new tab) before enrolling, challenging the long-held assumption that more choice creates more confusion. The challenge isn't offering choice. It's helping employees make confident decisions.
At Oscar, the experience extends beyond enrollment: 90% of ICHRA members resolve issues in one call, 84% are digitally engaged, and 56% actively use the mobile app⁵. Oscar’s ICHRA members also have access to Oswell (opens in new tab), Oscar’s personal AI health assistant, for 24/7 support for everything from symptom checking to prescription refills and plan benefit explanations.⁶ For more complex needs, the dedicated ICHRA Care Team offers direct support from nurses and case managers. Combined with the Oscar mobile app, which offers real-time transparency into care and budgets, and everyday value features like $3 prescription lists,⁷ Calm™ memberships, and integrated rewards programs, Oscar ensures the member experience is as robust and supportive as it is easy to navigate.
5. Are you choosing a solution built for where healthcare is headed?
A few years ago, the biggest question was whether ICHRA would catch on. Today, the conversation has shifted from "Will it work?" to "How do we make it work well?"
Federal policy has established a durable framework for ICHRA, states continue investing in stronger individual insurance markets, and employers are increasingly looking for sustainable approaches to healthcare spending. At the same time, new technology is making the experience easier for employers, brokers, and employees alike.
"Healthcare benefits are following the same path we've seen in other industries – moving away from one-size-fits-all solutions toward greater individual choice," Reeves said. "Employers still play a critical role by investing in their workforce, but they have more flexibility in how they deliver those benefits than they did even a few years ago." That evolution doesn't mean traditional group coverage disappears. It just means employers have more viable options than they did in the past.
ICHRA won't be the right fit for every employer. But it's no longer an emerging concept. It's become a practical option that belongs in every benefits conversation.
Looking ahead
Healthcare benefits are becoming less about choosing a single plan and more about building a strategy that works for both the business and its people. Employers are looking for cost predictability. Employees expect more personalized choices. Brokers are increasingly serving as strategic advisors instead of plan selectors.
As Reeves sees it, employers don't have to choose between supporting their workforce and managing healthcare costs. Increasingly, they have more options for doing both. Whether a business ultimately adopts an ICHRA or another model, the goal is the same: build a benefits strategy that's sustainable for the business and meaningful for employees.⁸
¹ The Diabetes Care Plan is available to all eligible persons, regardless of disease status, in AZ, FL, GA , IA, IL, KS, MO, NC, NE, OH-B (Buckeye), OH-C (Cleveland), OK, TN, and TX. Plan names vary by metal: Bronze Simple Diabetes, Buena Salud Bronce Simple Para Diabetes, Silver Simple Diabetes, Gold Simple Diabetes. If you don’t have type 1 or type 2 diabetes, or you have pre-diabetes or gestational diabetes, these plans may offer you certain reduced costs, but you are not eligible for all Rewards and Incentives program offerings that offer even more savings. Coverage for benefits is limited per clinical guidelines. Maximum out-of-pocket insulin cost depends on applicable state rules. Review your plan documents to confirm costs. Oscar will apply the lower of the maximum state-mandated out-of-pocket insulin cost, or $100.
² The Breathe Easy COPD Plan is available to all eligible persons, regardless of disease status, in AZ, FL, GA, IA, NC, OH-B (Buckeye), OH-C (Cleveland), OK, TN, and TX. Plan names vary by metal and state: Bronze Simple Breathe Easy with Enhanced COPD Benefits, Silver Simple Specialist Saver with COPD, and Silver Simple Breathe Easy with Enhanced COPD Benefits.
³ The Women’s Health with Menopause Benefits Plan is available to all eligible persons, and is most suitable for women who are experiencing, or have experienced, natural or forced menopause. This plan is available in AZ, FL, GA, IA, MO, NC, NE, OH-B (Buckeye), OH-C (Cleveland), OK, TN, and TX. Plan names vary by state: Silver Simple Women's Health with Menopause Benefits and Silver Simple Women's Health with Menopause Benefits Guided Care.
⁴ The Chronic Care CKM Plan is available to all eligible persons, regardless of disease status, in AL, AZ, FL, GA, IA, KS, MO, MS, NC, NJ, OH-B (Buckeye), OH-C (Cleveland), OK, TN, and TX. Plan names vary by metal and state: Bronze Simple MultiCondition Guided Care, Bronze Simple Chronic Care CKM, Silver 3750 Chronic Care CKM, Silver Simple MultiCondition Guided Care, Silver MultiCondition Care, Silver Simple Chronic Care CKM, and Gold 1500 Chronic Care CKM. Coverage for benefits is limited per clinical guidelines. Maximum out-of-pocket insulin cost depends on applicable state rules. Review your plan documents to confirm costs. Oscar will apply the lower of the maximum state-mandated out-of-pocket insulin cost, or $100.
⁵ Oscar ICHRA member data. March 2026.
⁶ Oswell provides general health and benefits information only. It is not a doctor and does not provide medical advice, diagnosis, or treatment. The chatbot’s answers may be inaccurate or incomplete, and are not reviewed by a clinician. In an emergency, call 911. See our Terms of Service for more details.
⁷ $0-$4 prescriptions include up to a 30-day supply of medication. The cost of these prescriptions may vary by plan, metal, and state, and not all plans offer this pricing as part of their benefits. Please refer to your Summary of Benefits to confirm coverage.
⁸ Oscar Medical coverage is underwritten by Oscar Insurance Company and its affiliates. Administrative Services for all plans provided by Oscar Management Corporation. All insurance policies and group benefit plans contain exclusions and limitations. For availability, costs, and complete details of coverage, contact Oscar at 855-672-2788.
