For decades, employer-sponsored health insurance has run on the exact same rigid tracks. Today, employers are actively looking to change direction. Between compounding annual renewal hikes and the sheer frustration of trying to force diverse, modern teams into one-size-fits-all plans, the pressure to find a sustainable benefits model is hitting a clear boiling point. Employers are ready to have a different conversation about health plans — and the data proves it.
To map out how the the market is feeling, the Employee Benefit Research Institute (EBRI) and Morgan Health conducted a massive study pulling insights from 984 benefits decision-makers from a range of employer sizes, including those who do and do not currently offer insurance. As a proud sponsor of the 2026 EBRI–Morgan Health Employer ICHRA Survey, we at Zorro got a front-row seat to the findings.
The data is clear: More and more employers are open to ICHRA. Read on for the key takeaways from the report, and what they signal about ICHRA adoption for 2027 renewals and beyond.
1 in 3 businesses currently offering health benefits are exploring, evaluating, or planning an ICHRA adoption in the next two years.
Some are actively planning the switch. Others are talking to their brokers about what ICHRA might look like in practice for them.
Either way, this number represents a profound shift away from traditional group health plans as the automatic default for American companies. When a third of the market is actively looking at the exit ramp, it means the status quo is no longer working.
It's important to recognize that this metric spans the full spectrum of interest, capturing everyone from employers doing initial market exploration and evaluation to those with blueprints actively in motion. In other words, it may not tell us exactly how many employers will be on ICHRA come 2027 — but it does prove that a massive portion of American employers are window-shopping for a better option.
62% of large employers (100+ employees) are either actively planning to offer an ICHRA or currently evaluating the model.
For years, defined contribution models were pigeonholed as a small-business-only trend — a “stepping stone” reserved for tiny startups or a cost-cutting mechanism for businesses with low headcount.
But this data completely shatters that narrative and signals that the ICHRA movement is moving upstream fast. While different companies may see different value in the model — whether they're prioritizing plan design flexibility, giving their teams more choices, or looking for better budget control — the overall appeal for companies at this scale is undeniable.
40% of employers with 500–999 employees report they are very likely to adopt an ICHRA in the near term.
Midsize to large employers represent the group with the highest near-term adoption conviction tested in the survey. Why? Employers in this bracket face unique challenges trying to balance robust benefits with sustainable budgets, and this data shows they are the most ready to step past the limits of traditional group plans.
77% of employers say that a recommendation from their broker or benefits consultant would make them more likely to adopt an ICHRA.
It’s clear that many employers are receptive to the idea of changing their benefits model, but they first want validation that ICHRA would be worthwhile for them. They are looking to their brokers to demystify the model, point them towards the right ICHRA administrator, and guide them through the transition.
The data shows a clear hierarchy of influence: a trusted broker's green light carries slightly more weight with decision-makers than seeing peer businesses adopt the model (76%) or getting an endorsement from a trade association (71%).
Ultimately, this validates a conviction that Zorro has held from the start: brokers are essential to ICHRA’s success. When brokers lead with confidence, employers are ready to follow.
89% of employers say they would be more likely to switch to an ICHRA if they could guarantee the same quality of provider networks and plan choice as a traditional group plan.
No employer wants to offer a benefit that forces their team to compromise on care. Because of that, it makes perfect sense that network adequacy and out-of-pocket costs are the primary hurdles to clear.
This is consistent with data from our 2026 Broker ICHRA Survey Report, which found that individual market plan quality was the most common objection that brokers hear from clients.
The good news? The historical stigma around "individual market quality" is rapidly becoming an outdated myth. Major health insurance carriers are pouring massive investments into building out premium individual networks — including off-exchange options specifically designed to mirror corporate group quality.
But "better coverage" doesn't always have to mean broader or more expensive. Traditional group health plans frequently leave employees overinsured, forcing everyone into rich, high-cost coverage regardless of what they actually use. ICHRA flips the script by letting individuals tailor their coverage to their actual life and budget — whether that’s a robust gold plan or a lean bronze plan that frees up dollars for other financial priorities.
The individual market isn't a second-tier fallback anymore; it's a competitive marketplace where employees can often find similar (or, sometimes, better aligned) access than a rigid group plan allowed.
55% of small businesses that do not currently offer health coverage are unaware that an ICHRA is an option for them.
Despite the surging interest among larger firms, a massive information gap persists at the smaller end of the market. Many small business owners want to offer health benefits to recruit and retain talent, but they assume that if they’re completely priced out by traditional group plan premiums, then there are no alternatives.
The data highlights a massive pocket of hidden demand: among these same small businesses, 1 in 4 indicated they would prefer ICHRA over a traditional group plan. The appetite is there; the industry just needs to do a better job of educating small employers that a flexible pathway exists.
What this signals for 2027 renewal season and beyond
This data charts a clear structural shift in how American businesses approach health care coverage. Employers are highly receptive to the freedom and predictability of defined contribution plans, and the companies that will move in the next two years are already putting the pieces in motion.
Want to see how your specific industry or business size views the future of benefits? Download the full 2026 EBRI–Morgan Health Employer ICHRA Survey here.
