Is ICHRA gaining momentum?

Growing costs and regulatory shifts driving growth

Increased Adoption of ICHRAs: The adoption of ICHRAs has been on the rise. Specifically, there was a 171% increase in the adoption rate from 2022 to 2023. ALEs (>50 employees) growth was 144% from 2022 to 2023!

Affordability Percentage Change in 2024: The IRS significantly decreased the Patient Protection and Affordable Care Act (ACA) affordability percentage for 2024 to 8.39%, down from 9.12% in 2023. This is the lowest percentage since the ACA's inception and it affects how affordability of health coverage is determined under the ACA. This change could make ICHRAs more attractive to employers and employees as it affects the calculations for affordable coverage.