Inflation, skyrocketing premiums and annual rate increases have left many employers feeling backed into a corner. They're looking for alternative ways to sponsor health benefits for some or all of their employees in a way that's fair, competitive and affordable.

For a growing number of employers, individual coverage healthcare reimbursement arrangements (ICHRAs) are checking these boxes. An ICHRA allows employers to make tax-advantaged contributions to employees who enroll in a health plan through the individual marketplace.We've been helping employers take advantage of this model since its inception and have seen it be particularly successful for: 

• Employers seeking to lower or manage costs while expanding options for employees
• Groups that experience high employee turnover
• Groups having trouble meeting participation requirements
• Groups with consistently high or sizable renewals
• Groups that have employees in multiple geographic locations
• Small to midsize employers, with increasing appeal to larger groups
• Groups new to offering benefits

Since first becoming available to employers in January 2020, ICHRAs have seen a surge in adoption. As more advisors bring this alternative option to their clients, we wanted to better understand employers' current perceptions of them. In partnership with Wakefield Research, Gravie recently conducted and published a nationwide employer survey of 500 health benefits decision-makers who don't currently offer ICHRAs to better understand their motivations and the barriers to offering the solution. 

Below are three key research findings, plus important considerations for benefits advisors: