ICHRA: Transforming
Employer Health Benefits
Centene, through Ambetter Health Solutions, is driving the evolution of employer-sponsored health coverage with health plans designed for Individual Coverage Health Reimbursement Arrangements (ICHRAs). ICHRA provides businesses of all sizes with affordable, customizable, and dependable health insurance options, empowering employees to take control of their coverage while meeting the evolving needs of both employers and their workforce.
What is an ICHRA?
The Individual Coverage Health Reimbursement Arrangement (ICHRA) was introduced by the federal government in 2020 as a new way for employers to provide health benefits to their employees. Instead of a traditional group health plan, ICHRAs allow businesses of all sizes to offer employees a monthly contribution to help them buy healthcare services that fit their unique needs.
This approach enables:
- Predictable costs for employers
- Personalized plan selection for employees from any available carrier
- Compliance with Affordable Care Act (ACA) requirements
Why ICHRAs Matter in Today’s Market
Rising healthcare costs and limited flexibility in the one-size-fits-all group plans have created challenges for businesses and employees alike. ICHRAs offer a compelling and sustainable path forward, addressing these challenges by:
- Expanding access to affordable, high-quality coverage
- Allowing employees to choose plans that fit their medical and financial needs
- Supporting employers of all sizes with cost control and administrative efficiency
SATISFACTION
94% of people were similarly satisfied or more satisfied with their insurance after moving to an ICHRA.
Source: Deft Research - 2024 Commercial Group and ICHRA Study
GROWTH
From 2024 to 2025, the number of businesses offering an ICHRA grew by 34%.
RETENTION
High retention rates: 80% of businesses renew their ICHRAs year-over-year.
Centene’s Strategic Role in ICHRA Adoption
Centene is not just participating in the ICHRA movement. We are leading it. ICHRA adoption aligns with Centene’s mission of transforming the health of the communities we serve, one person at a time. We believe ICHRAs are the future of healthcare coverage for employers and employees seeking more predictable, affordable, and personalized solutions because of their unmatched flexibility.
Centene is uniquely positioned to drive the evolution of employer-sponsored healthcare with health plans designed for ICHRAs by leveraging:
- National scale with local expertise
- Broad provider networks and competitive pricing
- Technology partnerships that simplify employer adoption
This strategic approach ensures that Centene is at the forefront of transforming employer-sponsored coverage, supporting flexibility for employers, choice for employees, and growth opportunities for brokers. With Ambetter Health Solutions, we’re advancing the future of health benefits today.:
Ambetter Health Solutions and ICHRA
Ambetter Health Solutions, Centene’s off-exchange marketplace business offering, delivers individual health insurance plans that are compatible with ICHRAs. While not an ICHRA itself, Ambetter Health Solutions supports employers who choose to adopt this reimbursement model by providing employees with access to affordable, personalized, and dependable coverage options.
ICHRAs Deliver Flexibility for Employers, Brokers, and Employees
Employers: Predictable Costs and Flexibility
Employers adopting ICHRAs gain greater control over healthcare spending by setting defined contributions while offering employees more choice. This model reduces administrative burden through benefit platforms and helps businesses of all sizes remain competitive in attracting and retaining talent.
Brokers: Driving Adoption and Growth
Brokers are essential in helping employers understand how an ICHRA could be a better solution to traditional group insurance. We understand how important brokers are for adoption of ICHRA in the employer space and are actively partnering with them to foster adoption.
Employees: Personalized Coverage and Portability
ICHRAs empower employees to select plans that fit their unique medical and financial needs, including preferred doctors and prescription coverage. Because these are individual policies, employees can keep their coverage even if they change jobs, ensuring continuity of care.
Current Footprint
Ambetter Health Solutions, launched in 2025, offers ACA-compliant off-exchange plans in Arizona, Florida, Georgia, Indiana, Kansas, Mississippi, Missouri, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, and Texas. By building tailored and local networks and cost-effective solutions that meet individual needs, we ensure continuous coverage – even when employment changes – offering a modern alternative to one-size-fits-all group plans.
At Centene, we’ve put the ICHRA vision into practice by introducing an ICHRA benefit for Indiana employees, offering more personal choice and coverage options to meet individual needs with localized, high-quality coverage. By starting with a targeted segment of our workforce, we’re able to implement the model thoughtfully, gather real-time employee feedback, and refine the experience to ensure it meets their needs in a meaningful way. What we learn from introducing this new benefit enables us to lead by example in this healthcare industry transformation, by shaping how well ICHRAs work and by tailoring solutions that meet the evolving needs of both employers and employees.
Explore Our Resources
For more information on how ICHRAs work for employers, brokers, and employees, visit: