Individual Coverage Health Reimbursement Arrangements, or ICHRAs, are showing up in more employer benefits conversations. That does not mean every client is ready to move away from traditional group coverage. However, it does mean more employers are asking questions and looking for advisors who can help them understand where ICHRA fits.
For brokers, that creates a practical opportunity.
When clients are under renewal pressure, the most helpful conversation is an earlier discussion about fit, timing, budget, employee experience, and implementation. The 2026 ICHRA Report from zizzl health and Deft Research found that 20% of employers who switched to ICHRA worked with a new benefits consultant to make the transition happen. That number is not a reason to panic. It is a reminder that employers often look for guidance when they are considering a different benefits strategy.
A few years ago, many employers were still learning what ICHRA meant. That is rapidly changing.
The 2026 ICHRA Report found that employer awareness of ICHRA increased from 54% to 79%, while familiarity increased from 50% to 75%. Employers are becoming more prepared to ask specific questions about how the model works.
That shift changes the broker conversation.
A client may not ask, “Should we replace our group health plan with ICHRA?” They may ask:
Could ICHRA help us manage renewal increases?
Could it work for a distributed workforce?
How would employees choose coverage?
What would this mean for administration?
How would we know whether it fits?
Those are advisor-led questions. Brokers who can answer them thoughtfully stay at the center of the relationship.
ICHRA does not need to replace every traditional group health plan conversation. It belongs in the broader strategy discussion when an employer needs another way to think about health benefits.
It may deserve a closer look when a client is dealing with:
Unpredictable renewal increases
A workforce spread across multiple locations
Employees with different coverage needs
Budget pressure from leadership
Low participation in the current plan
Interest in defined contribution strategies
A need for more plan choice without adding more internal work
The goal is not to force ICHRA into every renewal, but rather to know when it belongs on the table.
That distinction matters since a strong broker does not lead with a product. They lead with the client’s situation, then bring forward the right options.
The ICHRA conversation works best before a renewal deadline is driving every decision.
Early discussion gives brokers time to evaluate whether the strategy makes sense. It also gives employers time to understand how contribution setting, employee classes, plan availability, provider networks, and employee education would work.
That is where broker value becomes more visible.
When brokers bring ICHRA into the conversation early, they can help clients:
Compare ICHRA against traditional group coverage
Understand where the model fits and where it may not
Evaluate employee impact before making a decision
Set realistic expectations about implementation
Avoid rushed decisions close to open enrollment
This is also where trust grows. Clients want to know their advisor is looking around corners and not just reacting to a renewal.
Most employers do not need every technical detail in the first ICHRA conversation. They need a simple framework.
With ICHRA, the employer sets a defined monthly contribution. Employees use that contribution to choose individual health coverage that fits their needs.
Traditional group coverage usually centers on one employer-selected plan or a small set of plan options. ICHRA gives employees more individual plan choice while giving employers a defined contribution structure.
An employer may want to evaluate ICHRA when cost predictability, employee choice, workforce distribution, or renewal pressure are becoming harder to manage through a traditional group health plan alone.
Brokers should review plan availability, provider access, employee needs, contribution strategy, compliance requirements, payroll and payment processes, and the level of employee support needed during enrollment.
The finding that 20% of employers switching to ICHRA worked with a new consultant says something important about timing.
Employers may not change advisors because they want someone new, but they may change advisors because they need help evaluating something different.
When a broker can explain ICHRA clearly, compare it against traditional group coverage, and guide the employer through the practical questions, the relationship becomes more strategic. The broker is helping the client decide what kind of benefits strategy fits the business.
That role becomes more valuable as employer interest grows.
zizzl health is based in Milwaukee and supports brokers and employer groups nationwide with an ICHRA solution designed to make evaluation, implementation, and employee support more manageable.
For brokers, that support can help turn ICHRA from a concept into a real client conversation. zizzl health can help brokers look at plan availability, contribution strategy, employee education, enrollment support, and ongoing administration.
The broker stays central to the client relationship, while zizzl health helps support the process behind it.
ICHRA is becoming a more familiar part of benefits planning, and more employers will expect their broker to understand it.
The best time to introduce ICHRA is before renewal pressure limits the conversation.
For brokers, the opportunity is to know where ICHRA fits, know where it does not, and bring the strategy forward when it can help a client make a better benefits decision.