The ICHRA Shift: 4 Takeaways You Need to Know

Breaking Down the Popularity & Understanding of ICHRA Plans

You’ve likely heard a lot about Individual Coverage Health Reimbursement Arrangements, or ICHRAs, lately. Adoption of ICHRA plans rose 29% between 2023 and 2024. Whether you’re selling them now or curious about adding them to your product portfolio, there are many questions about what ICHRAs are, who they benefit, and whether they’re here to stay.

To get a better understanding from our audience, we surveyed AgencyBloc clients who primarily serve small to mid-sized employer groups to learn more about:

• The industry’s familiarity with ICHRA plans
• The likelihood that agents will propose ICHRA plans to employer groups this enrollment season
• Why group benefits agents are and are not choosing to sell ICHRAs
• What technology and resources benefits agents are using to support and manage ICHRA sales

Read through this blog to see the top takeaways from our survey results, then download the report to dive deeper into the data to help your agency decide what types of group benefits health plans you want to sell this year. 

4 Key Takeaways About Selling ICHRAs in 2025

Let’s break down what we learned about ICHRAs, their popularity, and the industry’s familiarity from our group benefits client base. These are our top four takeaways. 

1. Are agents selling ICHRA plans?

Our first question focused on who is selling ICHRA plans today. From the responses, over 38% of respondents are either currently selling or planning to start selling an ICHRA plan in the next 12 months. Another third of respondents are evaluating ICHRAs to see how they could fit into their product portfolios. 

These findings align with the buzz in the industry about ICHRAs and why the term has become a more prominent part of conversations. With over 70% of respondents currently selling, planning to sell, or evaluating ICHRAs, it suggests that these plans are here to stay and may continue to grow in popularity in the coming years.

2. How popular are ICHRA plans?

With ICHRA being a buzzword right now, the second question usually is, “How often are these types of plans sold?” We asked our clients to provide the general breakdown of their product portfolio to provide a broader vision of the popularity of ICHRA plans.

In our study, only a handful of respondents said that ICHRAs account for more than 25% of their current sold policies. This suggests that ICHRAs still make up a very small share of overall sales. Their limited adoption is likely due to two key barriers: many agents still find them complex or confusing. As a result, benefits agents have been slower to sell or recommend them to their employer clients.

3. How important is technology when supporting ICHRA plans?

After determining popularity, the next area we examined was how agents support and manage ICHRA sales. This brought technology into the conversation. We asked respondents to rate on a scale of 1-5 how important technology is, with 1 being “Not at all important” and 5 being “Very important.”

For those who do sell ICHRAs, it’s clear that technology is essential. With nearly 65% of respondents indicating that it is “Very important,” this creates a need for benefits agents to consider how their technology can support business growth if they decide to diversify with ICHRAs.

4. What challenges do agents face when selling ICHRA plans?

As the survey results show, ICHRA sales are on the lower end. So, we asked agents about their biggest challenges when selling ICHRA plans to understand those hurdles better. 

A third of respondents answered that ICHRAs are confusing. Breaking this down further, 19% said ICHRAs are confusing for employers, 8% said they’re confusing for brokers, and 6% said they’re confusing for employees. Overall, there is considerable confusion about ICHRA plans, how to sell them, and the most effective ways to market them to employer groups.

This is critical when forecasting the popularity and growth of ICHRA plans for the 2026 enrollment season. Additionally, these coming months will highlight whether ICHRAs will continue to be a buzzword into the new year. 

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Increase Your Agency’s Group Benefits Business in 2025

Each year, the enrollment season provides your agency with the opportunity to strengthen your client relationships and build your business. Using the right tools can help your team work efficiently, reduce manual processes, and actually win more business. Explore how AgencyBloc’s integrated Plus Suite for insurance professionals can help you manage your business, streamline small group quoting and enrollment, stay connected, and track your commissions.

Schedule a personalized, 1-on-1 demo to learn more today.

Posted by Allison Babberl on Tuesday, June 17, 2025 in Group Benefits

1. open enrollment
2. quoting
3. selling