A starter guide for busy brokers

Individual Coverage HRA 101

Employers of all sizes are facing rising costs with traditional group health insurance plans. Our ICHRA* solution, paired with our flexible voluntary benefits, offers a smarter path to predictable premiums, personalized coverage and growing employer demand.

*Individual Coverage Health Reimbursement Arrangements
business partners looking at data

Employer premiums have been increasing over the past five years

  • Average premium per month for family coverage
  • Average premium per month for single coverage
Source: KFF, 2025/2024 Employer Health Benefits Survey.
  • Average cost savings per employee/month for small employers* moving to ICHRA plans
*Small employers = 25-49 employees. Source: Millman, Early Insights, 2023.

How ICHRA works

  • Fixed employer contributions
    Employers set a defined tax-free allowance amount they choose to contribute toward employees’ monthly health insurance premiums
  • Employee plan selection
    Employees use their ICHRA funds to purchase an individual health plan that best fits their needs

Why consider our ICHRA solution?

We act as a trusted extension of your team — delivering fully supported, tech-enabled enrollment solutions that help simplify ICHRA and benefits administration. Whether you’re new to ICHRA or already have it in place, we meet you where you are and can help you reach both you and your client’s goals.

ICHRA can be a good fit for your clients if they:

  • Want more controllable and predictable health plan costs 
  • Can’t afford a traditional group health insurance plan
  • Want to offer their employees more health plan options

How ICHRA and traditional group plans stack up

Our side-by-side chart makes it easy to see the difference between ICHRA and traditional health insurance plans.
ICHRA plans Traditional group health plans
Employee picks their plan Employer selects the plan
More plans for employees to choose from Limited employee choice
Easier to budget and predict costs Less predictable and yearly increases
No participation requirements Participation minimums
Individual market increases have been single digits Double digit premium increases are possible

ICHRA solution that meets you where you are

Whether you’re starting from scratch, already have a platform you use or you’re somewhere in between — our ICHRA solution can make it easier to deliver more value to clients, save time and effort and grow your business.
  • Receive a client-specific voluntary benefits strategy that aligns with group needs and complements ICHRA plans.
  • Leverage a customized enrollment approach that meets employees where they are — across channels, schedules and preferences.
  • Gain access to a dedicated team of professionals, including ICHRA consultants and market development specialists, who provide expert guidance, training and acquisition support.

Your success starts with the right partner

Think of our ICHRA solution as just another tool in your toolbelt. Reach out to learn how we can help you save time, labor and money.
Get expert guidance

Frequently asked questions

Fill in your contact details, and we’ll be in touch soon.
Colonial Life is not providing ICHRA services or administration. All services and administration related to ICHRAs through this program will be performed by a third party. Employees must be enrolled in individual health insurance coverage to use the funds. Funds can only be used for qualifying healthcare expenses and cannot be used for things like excepted benefits premium reimbursement. Employers should consult their tax advisors for ICHRA implications.