How an ICHRA Partnership Can Support ACA Sales

More and more, agents selling Affordable Care Act (ACA) coverage are talking about Individual Coverage Health Reimbursement Arrangements or ICHRAs. This unique arrangement offers a flexible option for employers to ensure their employees have affordable access to health insurance.

ICHRAs could be a groundbreaking opportunity for agents in the under-65 market. We’ve got tips and reasons why you should create your own ICHRA partnership and work with employers in your area to offer affordable health coverage to individuals near you!

What Is an ICHRA and How Does It Work?

ICHRAs have gained in popularity since their introduction in 2020. According to the HRA Council’s annual report, the number of large employers offering ICHRAs grew by 34% from 2024 to 2025, and the number of small employers offering ICHRAs grew by 18%.

Employees will have the power to select their own health insurance plan that best suits their needs.

An ICHRA allows employers to reimburse employees for the costs associated with purchasing their own health insurance. These payments are tax free, and employees can use them to purchase a plan from the marketplace.

Establishing an ICHRA works in four steps:

1. Employers establish terms that fit the needs of their employees and their business, including defining reimbursement limits and employee eligibility requirements

2. Employees purchase individual health care plans from the marketplace that cover what they need

3. Plan premiums are reimbursed by the employer via arrangement with the ICHRA, and, in some cases, qualified medical expenses (filed in a claim) are submitted to a third-party administrator by employees to be eligible for reimbursement

4. The employer reimburses employees for approved claims, depending on the previous set terms

Now that you have a better understanding of ICHRA basics, what are the advantages and disadvantages of ICHRAs?

Pros and Cons of ICHRA

The added flexibility of an ICHRA can be critical for employees and families searching for more affordable health care when purchasing their own coverage from the marketplace is too expensive. Clients with employer-sponsored coverage are typically not eligible for subsidies because group plans are typically deemed “affordable coverage” by the marketplace, and without an employer contribution or subsidy, marketplace premiums can be expensive.

Pros of ICHRA

• Power of choice for employees
• Predictable costs for employers
• Ease of administration with a third-party administrator
• No employer contribution cap
• Suitable for businesses of all sizes
• Establishing an ICHRA triggers an SEP

Cons of ICHRA

• It can be intimidating for employers to establish (this is where knowledgeable agents like you come in!)
• Administrative requirements can be overwhelming without a third-party administrator
• ICHRA requires employers to be compliant with ERISA, COBRA, and ACA guidelines
• Employees lose the ability to apply premium tax credits if their employer participates in an ICHRA
• ICHRA funds cannot be used to purchase TRICARE, spousal group plans, or other health-sharing ministries
• Families may encounter gaps or need separate policies if the employer opts not to extend coverage to dependents

ICHRA Partnerships

An ICHRA partnership presents the opportunity for agents to earn referral credits and additional commissions. Establishing this kind of partnership can be done through a third-party administrator.

Ritter Insurance Marketing’s ICHRA Partnerships

At Ritter, we have partnerships with two organizations offering ICHRA support: Nexben and ezICHRA.

Although Ritter is not training, supporting, or facilitating ICHRA enrollments, we are proud to offer partnerships to agents looking to offer their services to employers. Each one of these partners offers different opportunities for agents with varying engagement levels.

Nexben

Nexben provides a proprietary platform for employers to offer and manage defined contribution benefits like ICHRA. They empower employees to shop and purchase the coverage that best suits their needs.

Agents have the ability to assist with the ICHRA administration and payment process. In addition, Nexben offers both a referral option and an option to retain agent of record (AOR) status on policies. Their technology consolidates premium billing and payment data to provide employers with one itemized statement.

If you are interested in partnering with Nexben and remaining the AOR, you must use an alternative enrollment platform such as HealthSherpa. For detailed questions or to get started with an ICHRA, contact Nexben at [email protected].

ezICHRA

ezICHRA is another ICHRA partner. They have the ability to offer financing options and technology connections for employers looking to offer affordable health insurance options to agents.

This partner operates as benefit consultants to provide great options and packages to employees and employers. Employees can reach out to ezICHRA either virtually or by phone for support when choosing a plan that’s right for them.

Note: Our partnership with ezICHRA is referral only. Agents can refer employers to ezICHRA for payment but are hands-off after the ICHRA is established.

Grow Your ACA Sales Using ICHRAs

If you’re interested in growing your ACA sales through ICHRA partnerships, connect with local employers that don’t offer health insurance benefits or may be experiencing high renewal rates and are looking for options to contain costs. Relationships are at the core of insurance sales, and that includes connections with vendors and businesses.

Partner with Local Employers

Connect with local employers to see if they either don’t offer coverage currently or have been experiencing high renewal rates and are looking for options to contain costs. To find employers who may benefit from offering their employees an ICHRA, start with small businesses in your area. Employers with at least one W-2 employee are eligible to offer an ICHRA. Often, small businesses are hesitant to take on the initial costs associated with providing health care coverage to employees, making an ICHRA the ideal solution. The money given to employees to pay for coverage is less than what would be spent on providing benefits.

We encourage you to go out and make valuable connections with your community!

An ICHRA is a great solution for small businesses because the money given to employees to pay for coverage is less than what would be spent on providing benefits.

Make ICHRA Referrals

If you make connections with employers who are looking to provide health benefits via an ICHRA, introduce your services and your ICHRA partner. Some ICHRA partners provide referral payments to agents who refer businesses and employees as an incentive! The more businesses you refer, the more the rewards could stack up!

We also suggest that you offer your services to support employees enrolling in a marketplace plan for the first time. Although you are not listed as the AOR on all enrollments, extending agent services is a great way to build trust and increase the possibility for later referrals and offering additional lines of coverage! Provide educational resources and contact information for the ICHRA partner and your agency. ICHRA referrals can be a profitable venture for your business and a valuable option for your clients!

ICHRA partnerships and referrals can be beneficial for agents looking to expand their ACA business. By earning referral payments with each employer you refer to one of our recommended ICHRA partners, you could earn more each year!

Register with Ritter to have access to our resources and exclusive opportunities through our ICHRA partners. If you’re interested in learning more about our ICHRA partners or how to get involved, email [email protected].