It’s happening.
I’ve been watching the evolution of ICHRA (Individual Coverage Health Reimbursement Arrangement) for a few years, knowing it had the potential to transform small business health insurance. Now, I’m fully convinced that transformation is underway.
Why? Because JPMorgan just got involved.
The linked article references pre-COVID data (2018–2019)—not exactly relevant for today’s strategy—but it does point to something big: JPMorgan’s healthcare arm, Morgan Health, has invested up to $20M in an ICHRA-focused company.
When a major player like JPMorgan backs a model like ICHRA, it signals a market shift. We’re at a turning point, and it’s becoming clear that ICHRA is on track to replace traditional small group, fully insured products.
Humana saw it coming—they exited the small group market a few years ago to focus on individual and Medicare offerings. And ever since regulations changed to allow employers to reimburse employees for individual plans, the path has been laid. Add to this the high rates being offered by the few carriers still in the small group market and it’s not hard to see the future.
We’re watching a major realignment in how health benefits are delivered—and it’s gaining momentum.
Curious to hear from others: Are you seeing the same shift in your markets?