RosettaFest has a reputation for convening one of the most engaged and thoughtful audiences–and 2025 was no exception. Our panel, “ICHRA as an And, Not an Or” (in partnership with Ambetter Health), drew a mix of skeptics and early adopters. The result was a lively dialogue that went beyond preaching one model over another—it was about surfacing what’s really working in the field.
Here are five takeaways that resonated (and sparked debate!) with the industry innovators in the room.
1. When group plans no longer fit, ICHRA shines
Not every client is ready for an entirely self-funded plan with onsite clinics and PBM oversight. And most can’t afford to absorb yet another double-digit renewal from their fully insured plan. That’s where ICHRA comes in.
For brokers, this makes ICHRA more than a last-ditch effort to cut client costs. It’s a credible, flexible option when standard employer-sponsored coverage doesn’t fit, but companies still want to offer a competitive benefits model to their teams. Positioning ICHRA as a scalable, future-ready solution allows you to solve client pain without pushing them into extremes or forcing them to make difficult coverage decisions.
2. Carve-outs and hybrids are moving mainstream
What used to be a niche tactic is now becoming standard practice. Employers are:
- Carving out geographies where group coverage underperforms, while maintaining their existing plan in stronger regions.
- Pairing ICHRA with direct primary care (DPC)—a strategy made even more attractive by recent legislative changes.
- Redirecting ICHRA-driven savings into additional benefits or lifestyle perks that strengthen an employee’s total rewards.
For brokers, these combinations make ICHRA a precision tool that can strengthen plan design instead of replacing it outright.
3. The individual market is evolving to support ICHRA
A few years ago, one of the biggest question marks around ICHRA was whether the individual market could carry the weight of the model—or whether coverage could live up to group standards.
Today, the answer is increasingly yes. Carriers are introducing off-exchange products targeting the group market, building ICHRA-specific service teams, and even experimenting with condition- or provider-specific offerings.
That means brokers can feel more confident supporting the transition, knowing employees won’t see a downgrade when shifting from group to individual coverage.
4. Education and expectation-setting are critical
ICHRA works differently from traditional group coverage, and brokers who set expectations early are the ones seeing the smoothest transitions. Employees need to understand how allowances work. Administrators need to be prepared for a new workflow. And employers need to know that the model is designed for predictability, not uniformity.
Many of the ICHRA objections brokers hear—around plan quality, administration, or employee confusion—stem from a lack of understanding of the model’s rules and processes. That’s why partnering with the right ICHRA vendor matters: strong tech for modeling and compliance, backed by real people to guide employees through the process.
5. The broker role is evolving—fast
Perhaps the biggest takeaway: In the face of regulatory upheaval and rate hike uncertainty, the broker role is more important than ever. Brokers are expected to be strategic architects, designing benefits that balance cost control with employee experience and tailoring coverage for today’s evolving workforce.
Because employers aren’t just buying a funding model anymore. They’re buying your ability to design a smarter, more resilient benefits strategy. And if you’re not introducing ICHRA as part of that conversation, someone else is.
In conclusion
Our conversations at RosettaFest 2025 reinforced a simple truth: ICHRA is no longer just a default when costs are unbearable. When used as an “and”, not “or”, ICHRAs give brokers another strategic lever to pull—and more ways to win.
Curious how these takeaways translate into client conversations? Book a demo with our team to learn more.
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