Generating health insurance leads is tough work. On top of relationship building, there’s a lot to learn about the ever-changing landscape of health benefits.
That’s why Take Command created these prospecting tips for ICHRA. To help you identify if your current clients or prospects are a good fit for ICHRA.
We’re ready to help with any questions you have.
Connect with an ICHRA Expert
ICHRA Lead Gen
You’ve read about ICHRA as a great health benefits solution and why Take Command is an amazing ICHRA administrator. And you know that offering ICHRA can help you be an even better resource for clients or grow your book of business.
But how do you know if a client is a good fit? How do you decide which clients to approach about ICHRA?
We’ve got you. Our ICHRA prospecting guide is your roadmap. It’s a scoring system that evaluates key factors that could indicate a good ICHRA fit.
We’re ready when you are. Strategize With Us.
Is ICHRA a Good Fit for Your Client?
There are a lot of factors that influence whether ICHRA is a good replacement for (or addition to) group health insurance. That’s actually a great thing because it means you have a step-by-step checklist to find out if you’ve got good ICHRA candidates.
Client Location
Where employees live has an impact on a company’s ICHRA fit. Different states have different affordability levels for the individual market. The best ICHRA markets have lower rates for employees as well as a competitive carrier environment, meaning lots of choice when employees are choosing their plans.
| Location | Points |
|---|---|
| Best ICHRA Markets | |
| California, Colorado, Georgia, Indiana, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas | 75 |
| Average ICHRA Markets | |
| Alaska, Arizona, Arkansas, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming | 20 |
| Evolving ICHRA Markets | |
| Alabama, Mississippi, New York, North Dakota, South Dakota, West Virginia | 5 |
Company Size
While any company is eligible for ICHRA, there’s a Goldilocks sweet spot for companies with 100–500 employees.
If your client is in this range, they’re required to offer health benefits by law. This makes them a great candidate for ICHRA because they’re already fully insured and you can advise on the pros and cons of group insurance vs ICHRA.
| Size | Points |
|---|---|
| 500–2,000+ employees | 20 |
| 100–500 employees | 75 |
| 50–100 employees | 20 |
Client Industry
Remember that Goldilocks thing? That applies here, too. Healthcare, nonprofit, and manufacturing industries are an ideal fit for ICHRA, and each for their own reasons.
- Manufacturing tends to have seasonal employees as well as different levels of claims for office workers vs on-site employees. This makes a one-size-fits-all health plan expensive because your client is paying top rates when not everyone needs it. With ICHRA, your client can create employee groups and designate allowances appropriate to their status.
- Nonprofits and budget-sensitive companies can use ICHRA to ensure consistent costs and budget predictability. This is crucial for financial planning and a competitive advantage when presenting a consistent budget line item for funders and grantors.
- Healthcare employees can have higher insurance claims, meaning the employer takes on the uncertainty and risk. With ICRHA, your client can move that risk to the market instead of taking it on. It’s a new way to care about employees by giving them choice and giving the company budget stability.
| Industry | Points |
|---|---|
| Top ICHRA Industry | |
| Healthcare, Nonprofit, Manufacturing | 20 |
| Average ICHRA Industry | |
| Professional Service, Tech, Startups, Retail, Hospitality | 0 |
| Other Industry | 0 |
Health Insurance Status
If your client loves their group health insurance, ICHRA is not a good fit. However, if they are struggling with rate hikes, premium increases, and budget unpredictability, ICHRA could be an ideal solution.
| Health Insurance Status | Points |
|---|---|
| Unhappy with their traditional group health insurance | 20 |
| New to health insurance | 10 |
| Happy with their traditional group health insurance | 0 |
Employee Premiums
When a company moves from group insurance to ICHRA, employees get to choose how they spend their allowance. They want a gold plan with a low deductible? Yep! They want to spend all of their allowance on a premium? Sure thing!
ICHRA puts employees in the driver seat just like they are for car or home insurance.
| Cost of Employee-Only Premium | Points |
|---|---|
| $800+ | 75 |
| $600–$799 | 50 |
| $400–$599 | 25 |
| $0–$399 | 0 |
Renewal Rate
Renewal rates are arguably the biggest pain point of group health insurance. Companies often struggle with astronomical rate hikes and are desperate for a new solution.
Switching to ICRHA allows your clients to future-proof benefits instead of being reactive to renewal rates, and they’ll realize compounded savings year over year. Moving to ICHRA gives your clients a budget they can count on.
Pain Points of Group Insurance
If your client has multiple locations, or is fed up with the high claims, administrative burden and employee dissatisfaction of group insurance, they’re not alone and they could benefit from ICRHA.
| Group Plan Pain Points | Points |
|---|---|
| High claims | 75 |
| Low participation | 75 |
| Multiple locations | 50 |
| Administrative burden | 25 |
| Employee dissatisfaction | 25 |
Find Your Leads
- Note the number of points in each category
- Tally the score
- Rank your leads
| Score | Points |
|---|---|
| 100+ points | Run (don’t walk) toward this ICHRA opportunity |
| 50–99 point | Look at the details, ICHRA could be a good fit |
| < 50 points | Not an ICHRA fit |
Want to do a pen-and-paper tally? Download the PDF guide.
Bonus Section: Mergers and Acquisitions
Mergers and acquisitions present a special opportunity for ICHRA. M&As require harmonization of benefits, where the parent company’s insurance has to incorporate with the company that’s coming on board.
When the acquiring company has an ICHRA, the new company seamlessly joins the ICHRA instead of having to go through the harmonization process.
It’s a great opportunity to scale because ICHRA makes quick work of benefits integration, so your client can grow quickly.
You’ve scored your clients and have a list of ICHRA opportunities. Congrats! Health insurance lead gen is hard work, and now you’ve got a running start. So now what?
Get a Refresher on the Pros and Cons of Group Insurance
Why should my client reconsider their group health insurance?
Even for experienced benefits consultants, a refresher can still be helpful. Brush up on why group insurance is a good (or not-so-good) choice, so you’re prepared to educate your client.
Soaring Costs
Since 2010, average total health insurance premiums for enrolled employees have risen by 61% for families and 55% for individuals. 1
Lack of Flexibility for Employees
Group health insurance is designed as one-size-fits-all, but employees have specific needs and may not be able to get the care they want.
Complex Administration
Choosing a plan, ensuring regulatory compliance, and handling claims or enrollment issues is a burden for HR teams.
1 https://www.census.gov/library/stories/2024/02/health-care-costs.html
Brush Up on ICHRA
ICHRA is a tax-free way for employers to reimburse employees for health insurance premiums and qualified medical expenses.
There’s so much to love. ICHRA has become a game changer for employers who are tired of expensive, confusing health insurance.
Easy Process
The ICHRA process is super simple.
- Employers design an ICHRA plan (with the guidance of their ICHRA administrator)
- Employees purchase their individual healthcare plan
- Employers provide ICHRA allowance through tax-free deduction or reimbursement
Incredible Benefits
Did we mention that ICHRA is a game changer?
- Budget control
- Personalized plan choices for employees
- Simple, flexible plan designs
- No employer responsibility for health risks
- No participation concerns
- Only with Take Command: In-house support team
Take Command is the First-to-Market ICHRA Administrator
We’re the first, we’re the best. Take Command is the first-to-market leader and the #1 HRA administration platform in the country. When you recommend us to your clients, you have full confidence that you’re backed by a strong ICHRA vendor who knows what they’re doing.
No matter what your book of business looks like, we can help. Our pioneering experience makes us uniquely qualified to support small businesses, large employers, and enterprise companies.
Find out how we take care of you and your clients:
Broker Compensation at Take Command
Compensation is not an afterthought at Take Command; it’s built into our pricing. We love our brokers and benefits consultants, and we work hard to take care of you. Ask around; we’re confident that your colleagues will sing our praises.
We calculate compensation for brokers and benefits consultants on a per employee per month (PEPM) basis, meaning you get comped for every one of your client’s employees who choose a plan through Take Command.
In addition to the standard service fee, we also split commissions with you for employees who purchase health plans through the Take Command platform.
Want specifics? We’re happy to chat! Schedule a Call
Keep Reading: Resources for Brokers and Benefits Consultants
Let's talk through your HRA questions
Fill out the form below to connect with our team and see if an HRA is a good fit.
Hi, I'm Amy! I wrote this guide because I care about ideas (big and little) that can help fix our healthcare system. I used to work on projects for Kaiser Permanente and the Parkland Health & Hospital System so I've seen the system inside and out. It's so important that consumers keep up with industry shifts and changing health insurance regulations. I'm also Take Command's Content Editor and a busy mom. Learn more about me and connect with me on our about us page. Thanks!
