Liferaft's recent webinar, 2025 Individual Carrier Rate Change Requests By State, highlighted critical insights into the 2025 individual market rate change requests and their implications for the Individual Coverage Health Reimbursement Arrangement (ICHRA) market. Over the last 18 to 24 months, there has been a growing gap between group and individual market rates, which will be crucial as open enrollment approaches. The 2025 individual market is seeing an average rate increase of 6.64%, slightly higher than previous years. This increase presents challenges and opportunities for employers considering an ICHRA to reduce healthcare costs, particularly in states where the rate changes vary significantly across carriers and geographies.

The webinar emphasized the importance of comparing individual market rate changes with group market renewals to identify cost-saving opportunities. In states where individual market rates are lower than group renewal rates, ICHRA becomes an attractive option. For instance, states like Alabama and Iowa see reductions in individual market rates, making them promising markets for ICHRA adoption. On the other hand, high-cost states like New York and Vermont face significant rate increases, which may limit the cost-saving potential of ICHRA in those regions. Liferaft encourages brokers to evaluate ICHRA on a case-by-case basis, considering the depth of available individual market plans and the specific rate trends in each state.

As ICHRA adoption grows, particularly in states offering tax incentives, such as Indiana, we believe 2024 into 2025 could be pivotal for broader acceptance of the Health Reimbursement Arrangement (HRA) model. emains committed to providing brokers and employers with the tools to manage the transition from traditional group plans to ICHRAs, ensuring that cost savings and plan flexibility are maximized. The ongoing evolution of individual market rates, coupled with the technological advancements in ICHRA management, underscores the value of ICHRA as a flexible, sustainable alternative to fully insured group health plans.

Our team knows the ins and outs of the health insurance marketplace and will guide you towards the solution that make the most sense for your business and your team. Come with questions! Our experts are happy to dig into the details to get you the clarity you need.

During the call, Liferaft will run a cost-benefit analysis on your company's current healthcare spending and show you different ways you can save—without sacrificing plan quality. After your consult, Liferaft will design a unique plan for your employee's health insurance, including suggested plans and accounts, plan policy documents, and the annual budget.