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As employers face another wave of health plan premium increases heading into 2026, some HR leaders are looking beyond traditional group insurance.
Mid-market organizations are increasingly turning to Individual Coverage Health Reimbursement Arrangements, or ICHRAs, to control costs while offering employees more choice, according to Matt Christopherson, co-founder of health technology company SureCo.
“Employers are contributing tax-free dollars to employees to help pay for their choice of individual plans,” Christopherson says. He notes that SureCo’s research shows that 44% of employers with 150 to 2,500 employees are considering ICHRAs for 2026.
ICHRA adoption is growing Matt Christopherson, SureCo
Christopherson says employers are using ICHRAs to shift risk from unpredictable group plans to the broader individual market. “This approach allows employers to reduce exposure to high-cost claims while staying compliant with ACA requirements,” he says. Some companies view the model as a strategic way to maintain cost predictability as premiums rise.
Digital enrollment platforms are enabling employees to select from the full range of ACA-compliant plans in their area, and these platforms can be integrated directly with HRIS and payroll systems. Christopherson explains that they often offer tools for provider searches, formulary checks and cost comparisons.
He adds that employers can
