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October 3, 2025

What is ICHRA Open Enrollment and How Does It Work?

Open enrollment is one of the most important times of the year for both employers and employees. For companies offering an Individual Coverage Health Reimbursement Arrangement (ICHRA), understanding how open enrollment works—and how it differs from traditional group enrollment—is key to a smooth, successful transition.

Here’s a clear breakdown of what it means, how it works, and how to make the most of it.

What is ICHRA open enrollment (OE)? 

ICHRA open enrollment (OE) is the annual fall window when eligible employees select qualified health coverage for the upcoming year. Just like with a group plan, companies are given a window in which to shop. However, there are three key factors that make ICHRA open enrollment unique:

  • Alignment with the National Open Enrollment period: Unlike group plans, where companies can set their own OE schedule, ICHRA OE must take place between November 1 and January 15 (in most states). Therefore, even if a company moves to an ICHRA mid-year (more on that below!), employees will need to re-enroll during the annual OE period to maintain coverage.
  • Plan access: Most employees are familiar with group enrollment, where they can choose from a handful of pre-selected plans, often from a single carrier. But with ICHRA, employees can choose from 50-100+ individual market plans across different carriers.
  • Employee support: Due to the expansion of choice mentioned above, employees may require more support during ICHRA OE. Platforms like Zorro simplify the process with plan selection tools and recommendations, in-platform chat, and live Enrollment Experts to ensure employees feel confident making choices without overwhelming HR teams.

ICHRA annual open enrollment vs. special enrollment periods

ICHRA also has special enrollment periods (SEPs) for qualified individuals. SEPs are relatively similar to a standard annual enrollment period, but with one major difference: SEPs allow employees to enroll in coverage or switch plans mid-year when triggered by events like:

  • A company transition from a traditional group plan to an ICHRA mid-year
  • Qualifying life events, such as marriage, the birth of a child, starting a new job, or loss of other coverage

How does ICHRA open enrollment work?

Here’s the typical flow for brokers, employers, and employees:

1. Review and finalize the allowance model

Employers, with broker guidance, set monthly contribution amounts for the upcoming year. Allowances are often adjusted to align with ACA affordability thresholds, premium trends, and business goals like recruitment and retention.

2. Alert employees to the upcoming shopping period

ICHRA vendors like Zorro send out 90-day notices to all eligible employees, but it’s smart for employers to reinforce the message. Clear reminders about shopping periods, deadlines, and support resources build awareness and reduce last-minute stress.

3. Kickstart the plan shopping process

Depending on your ICHRA model (i.e., whether your company manages it internally or uses an ICHRA administration platform like Zorro), employees may shop for and choose plans through the national or state marketplace, a broker, or an ICHRA administration platform like Zorro. 

When using a platform like Zorro, employees will even have the ability to choose and rank their coverage preferences, like minimizing out-of-pocket costs or keeping specific doctors in network, note their anticipated care levels, and filter plans based on best match, making the process easier and more customized than ever.

4. Support employees through enrollment 

Again, this step will vary depending on how you manage your ICHRA plan. In some cases, employees may need to submit their applications manually and then provide proof of coverage to internal benefits administrators or brokers. 

But when using a platform like Zorro, employees simply need to select their chosen plan, and our team of Enrollment Experts takes it from there. We’ll submit the application, set up autopay, and reach out to employees individually if any further action is needed from them. 

5. Monitor premium payments and reimbursements

With ICHRA, employees own their coverage, so they have the best line of sight into monthly premium payments. Encourage your team to log into their carrier accounts to ensure the payments have cleared and autopay has been set up correctly. 

But when it comes to reimbursements, Zorro removes the hassle of manual processes. Instead of employees paying upfront and waiting for repayment, Zorro automates premium payments by funding virtual debit cards directly, ensuring seamless, worry-free coverage for employees and fewer admin tasks for HR.

Tips for a successful open enrollment

A smooth ICHRA open enrollment doesn’t just happen; it’s the result of preparation, communication, and the right support. Here are four proven ways to set your team up for success.

1. Keep your employees in the loop.

Don’t wait until the last minute. Give employees time to review their allowance, explore options, and ask questions. Early awareness builds confidence, especially for those new to shopping on the individual market.

2. Educate clearly (and often).

Health benefits can feel overwhelming, especially when employees transition from group coverage to an ICHRA and have to choose from dozens of options for the first time. At Zorro, we provide live webinars, explainer videos, FAQs, and multilingual support so employees understand exactly how to choose the right plan.

3. Lean on technology.

Without an ICHRA administration platform, the model can require a substantial amount of administrative work. Lean on a platform like Zorro to automate compliance checks, manage reimbursements, and use AI to guide employees to the right coverage. The result? Less admin for HR, less guesswork for employees, and more peace of mind for everyone.

Want to learn more? Check out our ICHRA change management guide here.

In conclusion

ICHRA open enrollment doesn’t have to be complicated. With the right strategy and tools, it can be an empowering process that gives employees true choice, helps employers control costs, and alleviates administrative burden.

Curious what ICHRA open enrollment with Zorro could look like for your team? Book a demo to explore your options.

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