June 8, 2026

This piece is sponsored by Sanford Health Plan.

If you’re an employer, you already know that employee turnover will cost more than just the time of finding new talent. And when high turnover is paired with costly group healthcare plans, your business may be experiencing additional pain points and a loss of money and resources.

A modern solution to health insurance has emerged that fosters both employee retention and smooth transitions. Individual coverage health reimbursement arrangements, or ICHRAs, first became available in 2020 and provide an alternative to traditional group plans.

Let’s explore this new benefits model and what you and your team could gain from ICHRA.

Benefits of ICHRA for employers

Employers can rely on a predictable health benefits budget. This creates three key benefits:

• Controlled costs: Employers set a monthly allowance for each employee, which eliminates the uncertainty of annual premium hikes.
• Custom allowances: Contribution amounts can be customized by the employer according to 11 employee classes. This helps businesses meet the specific needs of their workforce while managing their own finances. Plus, employers may be able to extend benefits to more employees such as part-time or seasonal staff.
• Increased employee satisfaction: Offering health benefits is essential for attracting and retaining talent. The ability for employees to choose their own health insurance plan and provider network can be a powerful differentiator for employers.

How ICHRAs support employees

Employees have the freedom to select a plan tailored to their individual needs instead of trying to fit into a one-size-fits-all group plan.

Employees can enjoy these perks:

• Personalized coverage: Employees choose their own plans from the individual marketplace, giving them the ability to select coverage based on their unique health, family and budgetary needs.
• Local options: ICHRA is especially effective for geographically distributed or remote teams. Instead of relying on a national network that may have local coverage limitations, employees choose plans that work with the providers and hospitals in their community.
• Portability: Since individual plans belong to the employee, they can keep their coverage if they leave the company.

Innovative solution for businesses of all sizes

ICHRA can provide stable health benefits that increase employee satisfaction, which in turn can help reduce high-turnover rates. This innovative plan model uniquely appeals to both employers and their employees, with enrollment estimated to triple this year, according to BenefitsPRO.

If it’s time for your business to find a more affordable health benefits solution that expands coverage options for employees, Sanford Health Plan can support your transition to an ICHRA. It offers a partner platform to manage compliance and plan administration so employers can provide customized health benefits easily.

For information, visit sanfordhealthplan.com/business/ichra or call 888-535-4831.