The model for employer-sponsored health benefits has been strict for many years. Due to the lack of flexibility in group health insurance, many businesses were forced to cope with mounting costs and administrative demands. Conversely, workers had limited choices and often found themselves compelled to accept coverage that did not satisfy their needs. Individual Coverage Health Reimbursement Arrangements (ICHRA) were created as a solution, allowing companies to make pre-established contributions for workers to use toward their personal health insurance. The concept is simple, yet it is difficult to put into practice. Companies may find it challenging to manage compliance, integrate with payroll, and ensure that employees are aware of their options, especially if they have large or dispersed workforces.
That’s where benefitbay® comes in. By streamlining ICHRA administration through automation and intelligent technology, the company is making these plans not only accessible but practical for employers of all sizes. “The problem isn’t ICHRA itself, it’s making it work seamlessly,” says Brandy Burch, CEO of benefitbay®. “Employers need a system that handles compliance, integrates with payroll, and ensures employees can make informed decisions without confusion. That’s what we built.”
Brandy Burch
Without the right technology, ICHRA can be an administrative burden. Employers must track eligibility, maintain compliance with ACA and IRS regulations, process reimbursements, and educate employees on their options. These moving parts create complexity that, if not managed correctly, can make ICHRA implementation more challenging than a traditional group plan. “If you don’t have the right tools in place, ICHRA administration can become more burdensome than traditional group plans,” says Burch. “And if it’s too complicated, employers won’t adopt it.”
By developing an end-to-end platform that streamlines all facets of ICHRA administration, Benefitbay® has removed that complexity. By automating compliance tracking, the solution lowers the possibility of mistakes and guarantees that companies adhere to legal obligations. By eliminating the need for manual reimbursements, payroll integration enables money to transfer smoothly from companies to workers. Employees can choose coverage that best suits their needs with the use of decision-support tools, which give them a clear comparison of plans.“We’re taking the guesswork out of ICHRA,” Burch explains. “Employers don’t have to spend hours trying to decipher rules or worry about compliance missteps. Our technology handles it.”
The switch to ICHRA can be especially difficult for big organizations. A one-size-fits-all strategy is ineffective due to variations in workforce makeup, roles, and geographic locations. Businesses can customize their ICHRA products using Benefitbay®’s platform, guaranteeing that employee expectations and financial objectives are in line. Businesses with more full-time employees, fewer workers eligible for subsidies, and multi-state footprints are discovering that ICHRA plans provide a more viable alternative to traditional group benefits as their acceptance expands.
Brokers also play a significant role in this decision-making process. Their expertise helps businesses evaluate whether ICHRA aligns with their workforce composition, financial strategy, and long-term goals. But brokers also need tools that enable them to manage these conversations effectively. Benefitbay®’s platform provides a centralized dashboard where brokers can assess costs, compare benefits structures, and guide employers through plan selection. This level of transparency not only simplifies the transition but also ensures employers and employees have confidence in their choices. “We empower brokers to guide their clients through ICHRA transitions seamlessly,” says Burch. “From plan selection to cost analysis, our platform gives them everything they need to help employers make smart, informed decisions.”
The demand for ICHRA continues to rise as businesses seek more adaptable benefits models. While small businesses were initially the primary adopters, larger employers are now embracing the model, driving an. Employers are increasingly prioritizing benefits models that allow them to control costs while still offering competitive packages to attract and retain talent.
As companies look for more flexible benefit options, the demand for ICHRA is growing. Major employers are now adopting the approach, with an 84% increase in ICHRA adoption among large companies, although small businesses were the original main adopters. Benefits models that enable them to keep costs under control while maintaining competitive packages to draw and keep talent are becoming more and more important to employers.
Benefitbay® is committed to forming key alliances that improve the ICHRA experience even as it grows. The platform is always changing to satisfy the needs of employers and employees, thanks to integrations that make it easier to obtain coverage alternatives from carriers, including Oscar Health, Ambetter, and UPMC. The business now manages $128 million in premium volume yearly and serves all 50 states. With further investments in automation, AI-driven compliance, and seamless broker support, benefitbay® is ensuring that ICHRA is the future of employee benefits.
