Mark Mixer, HRASimple

Mark Mixer has spent over 40 years helping businesses and brokers navigate the complex world of employee benefits. As CEO of HRASimple, a founding member of the HRA Council, and a certified NABIP trainer, he’s a trusted guide for brokers looking to offer smarter, more human-first health plans. Mark writes to equip advisors with strategy, not just sales tools, so they can lead their clients with confidence. 

Understanding ICHRA

After 40 years in the benefits space, I’ve seen plenty of trends come and go. ICHRAs are not a fad. They’re a shift. And for brokers who want to stay relevant, resilient, and results-driven, shifts in the market demand shifts in your toolbox.

Here’s what you need to know to confidently bring ICHRAs to the table.

What Is an ICHRA, Really?

An ICHRA, Individual Coverage Health Reimbursement Arrangement, lets employers reimburse employees tax-free for individual health insurance premiums (and qualified medical expenses), rather than offering a one-size-fits-all group plan. It was authorized in 2020 as part of a push toward more consumer-driven health benefits.

The model is simple:

  • The employer sets a budget.
  • The employee chooses a plan (often through a tech platform that filters by location, need, and cost).
  • The company reimburses monthly.

While the core concept is straightforward, the back-end compliance and reporting requirements are anything but. ICHRAs must comply with IRS guidelines, ACA affordability tests, class definitions, and required employee notices. To make this process manageable, most employers work with an HRA administrator to offload compliance, streamline the experience, and keep their risk low.

Who Benefits from an ICHRA?

At HRA Simple, we’ve seen ICHRAs transform benefit strategies for:

  • Small businesses that want to offer meaningful coverage on a budget.
  • Applicable Large Employers (ALEs) needing ACA-compliant alternatives with more cost control.
  • Multi-state or remote teams who can’t be shoehorned into a single group plan.
  • Startups and nonprofits that need flexibility and simplicity without sacrificing value.

And it’s not just anecdotal.  According to the latest HRA Council report (a non-profit, non-partisan advocacy group), the data backs it up:

  • ALE adoption jumped 34% in the last year.
  • Small business ICHRA adoption rose 52%.
  • 83% of 2025 HRA users had never offered coverage before.

Put simply, ICHRAs give employers control over cost and employees control over choice, two things today’s market is hungry for. Instead of subsidizing a plan that doesn’t fit everyone, HRAs set a predictable, tax-efficient budget and give employees the power to choose a plan that actually meets their needs. 

Why Should Brokers Care about ICHRAs?

ICHRAs don’t just change benefits; they change your role as a benefits advisor. When you introduce an ICHRA strategy, you shift from plan seller to trusted advisor. You’re solving problems as a strategic partner.

With ICHRAs, you can:

  • Tap into new business from employers who couldn’t offer benefits before.
  • Avoid renewal-season stress tied to double-digit group plan increases.
  • Create opportunities to cross-sell ancillary and voluntary lines using money saved from switching to ICHRA.
  • Deepen trust by offering strategic, not transactional, solutions.

Wouldn’t it be nice to skip the brutal rate-hike talks every year? With HRAs, you get to flip the script — talking about how to use savings to grow benefits, not just cut them. Your clients can recruit and retain talent with a budget that’s actually predictable. 

The latest data shows that most small business HRA clients are new to offering benefits.  HRAs unlock an entirely new market segment for your brokerage to serve. If you’re not offering HRAs, someone else will. And they’ll be the one helping your client stretch their benefits dollars further.

Are ICHRAs for Everyone?

Not always. They’re not a cure-all. 

But ICHRAs are a powerful, flexible solution, especially in today’s high-cost-of-care environment. The goal isn’t to push every employer toward an ICHRA. It’s to recognize when the fit is right.

When an employer is a good candidate, the impact is often hard to ignore. The first-year savings can be significant, but the real value often shows up in year two and beyond, with pricing predictability and a chance to rethink the entire benefits strategy.

And here’s something important: Small and mid-sized employers frequently reinvest part of their ICHRA savings into expanding benefits, like better 401(k) matches, dental or vision coverage, or even boosting the ICHRA allowance itself. That reinforces the core purpose of offering benefits in the first place: attracting and keeping great employees.

A few real-world examples:

  • A Georgia company with over 2,000 employees saved $7 million in its first year by transitioning to an ICHRA.
  • My own company, Health One Alliance, with over 220 employees, saved $272,000 in our first year.

Bottom line: ICHRAs aren’t for everyone. But for the right group, they’re a smart, strategic move.

Final Thought

Brokers who understand ICHRAs and know when to recommend them have an edge. You’re advising clients on a strategy that has all the right components of cost containment, recruitment, retention, and employee sentiment, not just insurance. And you’re giving them access to benefits their teams actually value.

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Posted by Mark Mixer on Tuesday, June 24, 2025 in Health Insurance

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