Many Employers Still in the Dark About ICHRA, New Report Finds

Many Employers Still in the Dark About ICHRA, New Report Finds

Nearly half of employers unfamiliar with this health benefit alternative, according to 2025 study.

A new report reveals a major knowledge gap surrounding Individual Coverage Health Reimbursement Arrangements (ICHRAs)—a growing alternative to traditional group health insurance.

According to the 2025 ICHRA Report – How Employers and Benefits Consultants View ICHRA Today: 5 Key Insights from zizzl health, 46% of employers not currently offering ICHRA say they’ve never heard of it. Even among those who are aware, only 27% learned about it from their benefits consultant.

The findings are based on survey responses from nearly 500 employers and consultants, and suggest that while ICHRAs are gaining traction, there’s still a long way to go in terms of education and adoption.

Key Insight: Employers are open to ICHRAs—especially when consultants take a proactive, educational approach.

Additional Highlights from the Report:

  • Consultants have the knowledge, but don’t always share it. Many understand ICHRAs well but aren’t actively recommending them.
  • ICHRA benefits are clear. Cost savings and employee satisfaction are top advantages, though misconceptions remain.
  • Proactive guidance leads to better outcomes. Employers who receive clear, early communication about ICHRA report higher satisfaction.
  • Adoption is growing. Consultants not presenting ICHRA risk falling behind in a shifting benefits landscape.

“These findings offer a roadmap for consultants to add value, for employers to make informed decisions, and for the industry to continue progressing,” the report concludes.