This week in ICHRA developments, amid rising ACA Marketplace premiums projected at a median 18% increase for 2026 and the uncertain extension of enhanced premium tax credits expiring at year-end, ICHRAs emerge as a flexible alternative for employers to control costs and provide personalized coverage.
Summary: ICHRAs enable employers to set flexible reimbursement budgets based on employee needs, shifting risk to the individual market amid 18% projected premium hikes in 2026 and expiring ACA tax credits. This model benefits low-enrollment industries and distributed workforces by offering cost control and plan choice.
Summary: Covers the unlikely extension of ACA enhanced premium tax credits, with a Senate vote deadline of December 12, leading to decreased enrollments and state responses like premium support. Also notes 2026 employer health plan tasks, including compliance with new acts and mental health parity.
Summary: The HRA Council advocates for statutory authority over ICHRA, regulatory fixes to reduce burdens, support for hybrid coverage models, and increased education, in response to a congressional RFI seeking to expand alternative health options for employers.
Summary: Explores how the growing ICHRA market could lead to narrower, cost-effective networks better aligned with employee needs, as predicted by industry executives, potentially helping control coverage costs.
Summary: Highlights ICHRA's appeal for cost predictability by capping employer contributions, suitable for dispersed or high-turnover workforces, but warns of challenges like employee frustration in navigating marketplaces and perceived benefit downgrades.