ICHRA is moving up-market.

By Mimi Sibley – SVP & General Manager, Gravie ICHRA

The ICHRA market is growing up fast, and the conversation around it hasn’t caught up.

There are now more than 50 ICHRA administrators in the market, with private equity and venture capital pouring in. Companies like HealthSherpa and ICHRAx are building the underlying rails. Carriers like Ambetter and Oscar are doubling down. At our recent Broker Summit, brokers told us the same thing: ICHRA is no longer optional in a broker’s toolkit.

And yet the misconceptions persist that ICHRA is a last resort for small businesses under 50 employees or only for groups net new to benefits.

That’s not what we are experiencing day to day at Gravie. Our employers range in size from tens to thousands. And only 20% of our clients are net new to benefits, far from a majority.

Among larger employers, we are also seeing more interest in a dual strategy where a cohort of the population is on ICHRA and another cohort on more traditional insurance. 

We expect ICHRA growth to continue to accelerate as traditional insurance costs climb. Last year, the average renewal we saw was 30%. For most employers, that forces a hard choice: slim the benefit, or rethink the model entirely. ICHRA allows for cost control while continuing to offer great benefits to employees.

As employers of every size evaluate their options this year, we believe more and more will select ICHRA. We’re building for that. As this segment grows, Gravie is ready with a best-in-class solution that meets employers where they are.

Want to talk about what this looks like? Get in touch.