And you’ve really done that. One of the biggest pain points we were trying to solve was how brokers can remain the agent of record and not give up revenue when moving to ICHRA. Another challenge was enrollment—both on the consumer side and on the carrier backend. GoWell has truly solved those pain points. The key is being a broker’s friend and resource in this space, which historically hasn’t existed.

This would be a good time—Deb, if you can—explain in simple terms what an ICHRA plan is, how it works, and how it compares to traditional group health insurance. Holly can add to that afterward.

Absolutely. ICHRA stands for Individual Coverage Health Reimbursement Arrangement. Essentially, an employer can offer their entire workforce—or specific classes of employees—a monthly reimbursement to purchase individual, unsubsidized health coverage that best meets their needs.

Holly, do you want to add anything?

Yes, I agree. One of the biggest benefits of ICHRA is personalization. Employees can choose the plan that works best for them, which turns benefits into more of a financial discussion rather than trying to force everyone into one or two plans. With ICHRA, employees can select plans based on fertility benefits, mental health coverage, preferred providers, or specific prescriptions. When employees pick the right plan, insurance becomes their ally by helping cover the cost of care. ICHRA really brings that flexibility to the forefront—there are very few restrictions on plan choice.

I agree as well. Initially, employees can be a little nervous about being in the driver’s seat. But with good counseling, brokers—as the agent of record—can guide employees just as they would during a traditional group renewal. They can help narrow networks, providers, and pricing that make the most sense.

Another big benefit is for employers. Holly, maybe you can expand on this—the ability to set a budget and know exactly what each employee costs. Hiring becomes more predictable, and renewals are no longer a guessing game.

That’s right. We often say goodbye to traditional renewals because they don’t really exist in the same way anymore. Rates change based on age, so increases are predictable—typically around 6–10%. You don’t see 30% or 100% renewal increases like you do in the group market because this is the individual market. We haven’t seen dramatic increases, and we don’t expect to.

Based on that, let’s talk about contributions. How are they determined?

That’s where the platform really shines. While you can technically do ICHRA with or without a platform, the platform provides organization and recordkeeping. Brokers managing multiple groups know how hard it is to track enrollments. With a platform, you can see who’s enrolled in what plan at any time.

There are generally three ways to set contributions:

Flat dollar amount – Common for groups under 50. Employers contribute a set amount and employees choose their plans.
Base plan funding – More common for larger groups. Employers fund to a benchmark plan and set affordability thresholds.
Percentage-based contribution – Ideal for employers transitioning from traditional group plans who want contributions to feel familiar.

 

Even when a base plan is used, employees can still choose any plan they want. This flexibility makes transitions easier, especially for long-standing groups.

One reason we chose GoWell is that the platform handles compliance requirements, including the 3:1 contribution ratio, age variations, and affordability modeling. Uploading a census and letting GoWell do the modeling is a massive time saver.

Once modeling is complete, GoWell creates an 8–10 page PowerPoint specific to the group. It’s simple, clear, and extremely helpful for explaining ICHRA to both employers and employees.

The platform also functions like a benefits administration system. Employees make elections, records are retained, and employers can add or terminate employees—all while keeping the group together, even though coverage is individual.

Now, let’s talk about the employee experience once an employer adopts ICHRA.

Employees can enroll on their phone, computer, or tablet. They create an account, enter an employer code, confirm their demographics, add dependents if applicable, and shop plans available in their ZIP code. They can filter by carrier, deductible, or rate, select a plan, and submit.

Under 2024 guidelines, employees must also sign a broker consent form, which is built into GoWell. This names you as the agent of record and ensures compliance.

The process only takes a few minutes.

Regarding eligibility, plans always start on the first of the month following the employer’s waiting period—similar to traditional group insurance. Employers can offer group plans and ICHRA simultaneously as long as they’re offered to different classes of employees. There are 11 allowable classes under ICHRA, including full-time and part-time.

If a plan is deemed unaffordable, employees can still pay premiums pre-tax through a Section 125 arrangement, which GoWell can help set up.

One major trend we’re seeing is full ICHRA takeovers. Many employers are moving entirely away from group health plans rather than carving out classes. That said, larger and more complex employers are using ICHRA creatively to solve geographic and workforce challenges—especially for multi-state employees.

ICHRA isn’t one-size-fits-all. Self-funded and fully insured plans will continue to exist. But ICHRA is a powerful option that brokers need to understand, because employers are hearing about it whether we bring it up or not.

Some of the biggest success stories include micro-groups that never had insurance before, groups that couldn’t meet participation requirements, and self-funded plans with runaway costs. If your equivalent rate is $600 or higher, ICHRA often wins.

The flexibility is unmatched. Employers can customize funding strategies, and employees can choose any carrier or plan that fits their needs—silver, gold, catastrophic, or otherwise.

For off-exchange enrollment and pre-tax arrangements, GoWell has partnered with carriers to enable seamless enrollment through data feeds, similar to a traditional benefits admin system. Enrollment, terminations, and payments are automated.

GoWell also offers a third-party payer solution through a banking API. Employer contributions are routed directly to employee premiums, eliminating reimbursement delays. This is our recommended approach, though alternatives like HRA cards or payroll reimbursement are also available.

Importantly, the broker always remains the agent of record. That was critical to us and is one of the main reasons we partnered with GoWell. The platform is broker-centric and designed to protect your business.

When rolling this out, communication is key. Treat open enrollment like normal—explain what ICHRA is, how funding works, and what it means to have individual coverage. Employees should understand that they are the policyholder, receive communications directly, and can keep their plan if they leave employment.

The PowerPoint deck and handouts provided make these conversations much easier.

To close with a success story: one employer with 70 employees was paying $55,000 per month. Even if all 150 eligible employees enrolled under ICHRA, they would still save approximately $2,000 per month while covering everyone.

In summary, ICHRA offers flexibility, predictability, savings, and choice. It’s not right for every group, but it’s a powerful tool every broker should be prepared to discuss.

Thank you all for your time today. You’ll receive the recording and handouts shortly. Please reach out with questions—we’re happy to continue the conversation.