A Better Approach to Health Benefits
For decades, employer-sponsored group health insurance has been the standard way to provide coverage. But that structure often leaves employees with limited options and businesses struggling to keep costs predictable. As healthcare needs become more personalized, one-size-fits-all coverage no longer satisfies a diverse workforce.
The Individual Coverage Health Reimbursement Arrangement (ICHRA) has emerged as a better model – one that gives employees real choice and gives employers control over cost and compliance. Rather than forcing everyone into a single plan, ICHRA allows each employee to choose coverage that fits their life while the employer defines the budget.
Henderson Brothers helps organizations nationwide adopt this flexible approach to benefits, guiding both leadership and employees through the transition to ensure long-term satisfaction and success.
What Makes ICHRA Different
Traditional group health plans tie everyone in an organization to a single policy. The employer chooses the carrier, plan design, and network, and employees adapt to whatever is available.
An ICHRA reverses that process. Employers contribute a fixed, tax-free monthly allowance that employees can use to purchase individual health insurance from any carrier or through the federal Marketplace. Each employee selects a plan that works best for their specific needs, and the employer reimburses premiums up to the defined amount.
This structure replaces guesswork with clarity. Employers know exactly what they will spend on healthcare benefits, and employees finally have the power to make decisions based on their families, locations, health care needs, and preferences.
Putting Employees First
More Personal Choice
Healthcare is deeply personal. With ICHRA, employees no longer have to choose between a few pre-selected group options. They can evaluate plans from multiple carriers, compare costs and networks, and select what best fits their medical, financial, and family situations.
For example, a younger employee may prioritize a low premium with a higher deductible, while a family might look for broader coverage and predictable out-of-pocket costs. ICHRA allows both preferences to exist within the same organization without forcing trade-offs.
Coverage That Travels with Them
Individual plans purchased through ICHRA are portable. Employees keep their coverage even if they change jobs, move across states, or switch to part-time work. This portability adds value and security, especially in industries with high turnover or a mix of full-time and contract workers.
Simplified Reimbursements
Employees submit proof of qualified coverage and receive tax-free reimbursements up to the monthly allowance. Most organizations manage this through digital platforms that make verification simple, private, and fast.
For employees, it’s a straightforward way to handle healthcare without confusion or red tape.
How Employers Benefit When Employees Have Choice
Higher Satisfaction and Retention
When employees feel empowered, they’re more satisfied with their benefits. Henderson Brothers’ ICHRA clients consistently report higher satisfaction scores after implementation.
A mid-sized mechanical contractor achieved 95 percent employee satisfaction and nearly half-a-million dollars in annual savings after switching to ICHRA. Another Henderson Brothers client, a large non-profit employer, saved almost $750,000 and 90% of their employees were receiving free healthcare following their implementation of an ICHRA.
Higher satisfaction directly supports retention and morale. Employees who understand and value their benefits are far less likely to leave for another job, especially when their coverage stays consistent year after year.
Predictable and Sustainable Costs
Rising healthcare costs are one of the top financial concerns for employers. Group plans are vulnerable to premium increases that often exceed inflation. ICHRA replaces those unpredictable expenses with a fixed contribution that the employer controls.
Instead of reacting to carrier renewals, leadership can forecast healthcare spending with confidence. Over time, this model can reduce volatility in annual budgets and strengthen long-term financial planning.
Because employer contributions are tax-deductible and reimbursements to employees are tax-free, both sides benefit from a more efficient use of funds.
Simplified Administration and Compliance
Henderson Brothers assists employers with every aspect of ICHRA setup, from plan design to compliance documentation.
Employers decide which employee classes are eligible (full-time, part-time, seasonal, or remote) and Henderson Brothers ensures all categories meet Affordable Care Act (ACA) and Department of Labor (DOL) standards.
Why Education Matters
An ICHRA program succeeds only when employees understand how to use it effectively. Henderson Brothers places education at the center of every rollout, ensuring that communication is clear, consistent, and accessible.
Clear Communication Builds Confidence
Employees receive step-by-step guidance on how to evaluate health plans, use the Marketplace, and manage reimbursements. By demystifying the process, Henderson Brothers helps employees make confident, informed decisions.
When employees feel supported, they’re more likely to engage with their benefits and appreciate the employer’s investment.
Ongoing Education and Support
Education continues beyond the initial launch. Henderson Brothers provides annual check-ins, updated educational materials, and support for new hires to ensure that ICHRA remains effective over time.
For organizations introducing ICHRA for the first time, this proactive approach reduces resistance to change and helps build lasting trust between employers and employees.
A More Inclusive Model
ICHRAs naturally promote inclusivity by accommodating different types of employees under one framework.
- Full-time and part-time employees can each receive proportional allowances.
- Remote and multi-state teams can be included without facing location-based insurance limitations.
- Seasonal and contract workers can be offered separate eligibility classes.
This flexibility allows employers to create equitable benefit structures that reflect the modern workforce.
For growing organizations, ICHRA provides a scalable way to maintain benefits parity across teams, offices, and locations without restructuring plans every year.
Real Results, Real Impact
The outcomes of ICHRA adoption speak for themselves.
- A 70-employee contracting firm faced a 75 percent renewal increase before switching to ICHRA and saved $492,000 in its first year.
- A 10-employee craft business adopted ICHRA and achieved 100 percent satisfaction among staff.
Both organizations continue to partner with Henderson Brothers for compliance oversight, renewal management, and employee education.
Their experiences demonstrate that ICHRA doesn’t just reduce costs, it improves satisfaction, retention, and overall engagement.
Is ICHRA the Right Fit for Your Organization?
ICHRAs are highly adaptable and work well for many types of employers. They’re especially effective for organizations that:
- Want predictable budgeting and reduced exposure to premium hikes.
- Employ remote, hybrid, or multi-state teams.
- Seek to improve retention through stronger employee engagement.
- Require compliance with ACA affordability rules.
Henderson Brothers helps employers determine fit through a 7–10 business day feasibility analysis. This process compares your current group plan to an ICHRA model and provides a detailed projection of savings, compliance, and employee impact – allowing leaders to make data-driven decisions with confidence.
Partnering with Henderson Brothers
Transitioning to ICHRA is seamless with expert guidance. Henderson Brothers provides:
- Strategic Planning & Feasibility Analysis – Evaluate savings potential and regulatory fit.
- Plan Design & Implementation – Define contribution structures, eligibility, and reimbursement rules.
- Employee Education & Communication – Ensure your workforce understands how to access and use benefits.
- Ongoing Support & Renewal Management – Maintain compliance, optimize performance, and support employees year-round.
With over 100 years of experience in employee benefits and compliance strategy, Henderson Brothers combines expertise with hands-on support to deliver measurable results.
Modern employees expect flexibility, transparency, and choice from their benefits. ICHRA makes it possible to deliver all three while giving employers long-term cost control and compliance confidence.
When implemented with an experienced partner, ICHRA transforms healthcare benefits from a burden into a strategic advantage.
Henderson Brothers helps organizations nationwide design and manage ICHRAs that meet today’s needs and prepare for tomorrow’s challenges.
Contact Henderson Brothers today to learn how to make ICHRA part of your long-term benefits strategy.
