How ICHRA Helps Healthcare Organizations Control Costs and Expand Benefits

Healthcare organizations face a tough balancing act. They must offer competitive coverage to attract and keep staff, yet rising healthcare premiums and higher out-of-pocket costs make that goal harder every year.

Recent data from the U.S. Bureau of Labor Statistics shows that workers in the health services industry face some of the highest out-of-pocket healthcare costs. Combined with policy changes that may impact access to subsidized coverage, the pressure on both employers and employees is mounting.

Why ICHRA works particularly well in healthcare

Healthcare companies are among the most complex to insure. Their workforces span a wide spectrum of job types, income levels, and schedules—think highly compensated physicians and specialists alongside administrative, service, and maintenance staff. Add in multi-site or rural operations, and you have employees scattered across locations (and sometimes states) with very different provider networks and plan options.

This is where the Individual Coverage Health Reimbursement Arrangement (ICHRA) excels. With ICHRA, employers set a fixed monthly allowance for each eligible employee to purchase an ACA-compliant individual plan that works best for them. This approach allows healthcare organizations to:

• Stabilize budgets by avoiding steep, unpredictable jumps in group premiums.
• Empower employees to choose plans that align with their provider preferences, location, and health needs, whether they’re in a busy metro hospital or a rural clinic.
• Support diverse roles equitably by creating equitable allowances tailored to different employee classes.
• Eliminate restrictive networks that can limit provider choice and disrupt continuity of care.

In short, ICHRA lets healthcare employers deliver personalized, equitable benefits to a dispersed, diverse workforce—without sacrificing cost control.

ICHRA for healthcare organizations in action: How Rush Memorial cut costs and expanded choice

Rush Memorial Hospital, a rural facility in Indiana, faced a difficult choice: absorb climbing group premiums, pass more costs to employees, or find a better way. Their benefits consultant recommended ICHRA, and with Zorro’s guidance, they made the switch in 2024.

The impact was immediate:

• Hundreds of thousands in annual savings, freeing funds for patient care and staff programs.
• Greater choice for employees, who could select plans that included their preferred providers.
• Simplified administration, with automated enrollment and reimbursement handled through Zorro’s platform.

By transitioning to ICHRA, Rush Memorial not only reined in costs but also helped employees take control of their healthcare choices, reducing the financial strain that’s rising across the industry.

The takeaway for healthcare companies

For healthcare organizations, ICHRA offers a way to:

• Control healthcare costs without cutting coverage.
• Attract and retain top talent with flexible, personalized benefits.
• Simplify benefits administration for complex and multi-location workforces.

The financial and staffing pressures in healthcare aren’t disappearing anytime soon—but with ICHRA, employers can turn benefits from a budget challenge into a competitive advantage.

See what ICHRA could do for your organization. See how much your hospital or clinic could save with Zorro’s ICHRA Savings Calculator, or explore our full Rush Memorial case study to learn more about their journey.