--- title: ICHRA Use Increasing description: In 2023, U.S. employer’s adoption of individual coverage health reimbursement arrangements (ICHRAs) increased by 64%, according to a HRA Council report. image: https://blog.nisbenefits.com/hubfs/blog-headers/ichra-b.jpg --- ![ICHRA Use Increasing](https://blog.nisbenefits.com/hubfs/blog-headers/ichra-b.jpg) # ICHRA Use Increasing - Home - [Employee Benefit News for School, City and County Employers](https://blog.nisbenefits.com) - ICHRA Use Increasing [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 09/28/2023 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [0 Comments ](https://blog.nisbenefits.com/ichra-use-increasing#postComment) 1 Minutes *1 minute read* In 2023, U.S. employers’ adoption of individual coverage health reimbursement arrangements (ICHRAs) increased by 64%, according to a HRA Council report. An ICHRA allows employers to offer employees a monthly allowance of tax-free money to pay for health care services. They can help control costs and address Affordable Care Act Compliance. The use of ICHRAs is increasing as employers look for ways to control health costs.   ## **Key ICHRA Points** - The average monthly allowance for employees was $908.80 between July 1, 2022-June 30,2023. The median monthly allowance was $550. - Most employers don’t use waiting periods for new employees to join. Only 31% of employers implemented a voluntary waiting period. - The most popular submitted reimbursement expenses included insurance premiums, prescription drugs, and office visits. The average was 4.9 office visits with a reimbursement amount of $137.92 and 11.6 prescription drug requests, averaging $275.42.   ## **Takeaway** Traditional health insurance may not be flexible enough to meet today’s needs. Some employers are using ICHRAs which provide a monthly amount for employees to spend on individual insurance plans and out-of-pocket expenses. Download the [bulletin](https://blog.nisbenefits.com/hubfs/blog-supporting-docs/bulletin-ichra-use-increases.pdf) for more details. [![New call-to-action](https://no-cache.hubspot.com/cta/default/3325505/8735e94c-f275-430e-91d3-bc193234be09.png)](https://cta-redirect.hubspot.com/cta/redirect/3325505/8735e94c-f275-430e-91d3-bc193234be09)   --- #### Tag: [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) #### Share: - [Follow us on Facebook ](http://www.facebook.com/share.php?u=https://blog.nisbenefits.com/ichra-use-increasing) - [Follow us on Twitter ](https://twitter.com/intent/tweet?url=https://blog.nisbenefits.com/ichra-use-increasing&text=ICHRA%20Use%20Increasing) - [Follow us on Linkedin ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.nisbenefits.com/ichra-use-increasing) - [Follow us on Pinterest ](http://pinterest.com/pin/create/button/?url=https://blog.nisbenefits.com/ichra-use-increasing&text=ICHRA%20Use%20Increasingdescription=1%20minute%20read%20In%202023,%20U.S.%20employers’%20adoption%20of%20individual%20coverage%20health%20reimbursement%20arrangements%20(ICHRAs)%20increased%20by%2064%,%20according%20to%20a%20HRA%20Council[...]&media=https://info.nisbenefits.com/hubfs/blog-headers/ichra-b.jpg) --- [ #### Americans’ Retirement Outlook ##### Previous Post ](https://blog.nisbenefits.com/americans-retirement-outlook) [#### 2024 ACA Compliance Checklist ##### Next Post ](https://blog.nisbenefits.com/2024-aca-compliance-checklist) ### Leave a Reply This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### Category - [Legislative News (1149)](https://blog.nisbenefits.com/topic/aca-other-legislative-news) - [Health Insurance Solutions (504)](https://blog.nisbenefits.com/topic/health-insurance-solutions) - [COVID-19 (209)](https://blog.nisbenefits.com/topic/covid-19) - [Ancillary Benefits (175)](https://blog.nisbenefits.com/topic/ancillary-benefits) - [Mental Health (122)](https://blog.nisbenefits.com/topic/mental-health) ### Popular Posts [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 02/16/2024 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [ Understanding Embedded vs. Nonembedded Deductibles ](https://blog.nisbenefits.com/understanding-embedded-nonembedded-deductibles) [ Erin Woulfe ](https://blog.nisbenefits.com/author/erin-woulfe) 02/09/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ IRS Releases 2027 Health Plan Cost-sharing Limits ](https://blog.nisbenefits.com/2027-health-plan-cost-sharing-limits) [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 02/17/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ 4 Employee Wellness Trends You Can’t Ignore in 2026 ](https://blog.nisbenefits.com/2026-employee-wellness-trends) [ Dina Lubben ](https://blog.nisbenefits.com/author/dina-lubben) 11/14/2025 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ Trump Administration Unveils Plan to Make GLP-1 Drugs Affordable ](https://blog.nisbenefits.com/trump-administration-plan-glp1-drugs-affordable) --- ## Related Posts [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 07 July, 2026 #### [New CMS Report: Healthcare Spending Trends Through 2034](https://blog.nisbenefits.com/healthcare-spending-trends-through-2034) New projections from the U.S. Centers for Medicare and Medicaid Services (CMS) Office of the… [Read More](https://blog.nisbenefits.com/healthcare-spending-trends-through-2034) [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner), [ Mental Health](https://blog.nisbenefits.com/topic/mental-health) [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 06 July, 2026 #### [New HHS Rule Expands Catastrophic Coverage Access](https://blog.nisbenefits.com/new-hhs-rule-expands-catastrophic-coverage-access) The U.S. Department of Health and Human Services’ (HHS) Notice of Benefit and Payment Parameters… [Read More](https://blog.nisbenefits.com/new-hhs-rule-expands-catastrophic-coverage-access) [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ Mari Wagner ](https://blog.nisbenefits.com/author/mari-wagner) 25 June, 2026 #### [Federal Court Blocks Key ACA Exchange Restrictions](https://blog.nisbenefits.com/federal-court-blocks-key-aca-exchange-restrictions) A recent federal court ruling blocked stricter ACA Marketplace eligibility and enrollment… [Read More](https://blog.nisbenefits.com/federal-court-blocks-key-aca-exchange-restrictions)