Fixing the friction: Simplifying ICHRA enrollment

When individual coverage health reimbursement arrangements launched in January 2020, they ushered in a new era of flexibility in employer-sponsored health benefits. Employers could finally move beyond traditional group plans and adopt a defined-contribution model that reimbursed employees for individual market premiums — controlling costs while expanding choice.

The ICHRA model has gained steady traction, mirroring the 401(k) revolution of the 1980s and 1990s. Just as 401(k)s shifted retirement benefits from a one-size-fits-all pension to a more flexible, portable, employee-driven system, ICHRA is creating similar potential in health benefits: more personalization and control for the individual and a more sustainable long-term cost structure for the company.

But like 401(k)s in their infancy, ICHRA is still building the infrastructure necessary to reach its full promise. The retirement industry eventually developed a robust ecosystem —standardized data flows, easy portability and seamless connections between providers —that powered widespread adoption. ICHRA is now on that same path. And as with 401(k)s, the biggest opportunities ahead depend on technology and industry alignment.

As ICHRA enters its seventh year, its impact is clear, but so is the need to streamline the path from contribution design to coverage. Fortunately, meaningful progress has taken shape. Carriers, enrollment platforms and ICHRA administrators are increasingly aligning on shared processes and building integrated workflows that deliver a more unified, streamlined and group-like plan selection and enrollment experience for all stakeholders.

A unified approach: The power of industry collaboration

ICHRA’s enrollment complexity isn’t merely technical; it’s structural. With group coverage, employees are enrolled en masse, but with ICHRA, they are enrolled individually. Yet most carriers still lack standardized enrollment formats across the individual market. Each operates differently, often with variations by state. This leaves ICHRA vendors to juggle dozens of unique submission processes. The outcome? Redundant work, inconsistent data and increased risk of delays or errors.

To bridge these gaps, early ICHRA administrators developed workarounds. Helpful as they were for pushing the model forward, they couldn’t solve the underlying issue of fragmentation.

That’s now changing. Roughly 25 carriers nationwide have begun embracing ICHRA’s growth by establishing direct enrollment integrations with HealthSherpa, an individual health plan enrollment platform. Other enrollment platforms are pursuing similar integrations for broader expansion in 2026.

These connections represent more than a technical improvement; they mark a coordinated industry effort to modernize the infrastructure behind ICHRA. By replacing static PDFs and manual uploads with secure, automated data exchange between systems, carriers, platforms and administrators are finally aligning around shared standards.

This shift enables smoother, more consistent enrollment experiences and reduces the risk of errors and delays associated with manual processes. The adoption of automated data flows is a pivotal step toward industry-wide standardization, paving the way for greater efficiency and collaboration among all stakeholders involved in ICHRA enrollment.

Together, they’re laying the groundwork for a scalable, consistent, group-like enrollment experience across the individual market.

Unlocking benefits: The clear advantages of a simplified process

As collaboration takes hold across the industry, the results are already clear. Direct carrier integrations have become the defining leap forward, transforming what used to be a manual, time-consuming process into a near-instant one.

With these integrations in place, enrollment data now moves seamlessly between ICHRA platforms and carriers, eliminating file conversions, duplicate entry and endless email chains.

For brokers and enrollment specialists, tasks that once took hours now take minutes, with automation cutting manual processing time by as much as 80%-90%. Employers benefit from faster confirmations and fewer administrative headaches, while employees enjoy a guided, friction-free enrollment experience that finally feels modern.

Collaboration as the path forward with ICHRA

The past year’s progress highlights a fundamental truth: the future of health benefits depends on collaboration. No single carrier, vendor or technology platform can modernize enrollment alone, but together, the industry can build a smarter, more connected system.

When carriers open their systems, vendors integrate their data and technology partners align on shared standards, everyone wins. Brokers gain scalability. Employers gain predictability. Employees gain confidence and choice.

As integration deepens and collaboration expands, ICHRA is steadily fulfilling its original promise: a benefits model that combines flexibility with simplicity, and choice with confidence. It’s a system no longer defined by administrative complexity, but by the needs of the people it serves.

Maya Perl is cofounder and chief product and customer officer at Zorro. Contact her at [email protected].

Michael Levin is senior vice president of ICHRA at HealthSherpa. Contact him at [email protected].