Since the finalization of regulations in 2019, the RightPath team has been educating the staffing industry on the advantages of ICHRAs for ACA compliance. Based on the increased mentions of ICHRA in the market, it appears the rest of the industry is finally catching up.

Structured and administered correctly, an ICHRA provides an Applicable Large Employer (ALE) under the ACA with the most cost-efficient way to comply with their obligations with zero claims risk, while empowering workers with the flexibility to select the level of coverage that works best for them.

The Problem with Traditional ICHRA Plans

Unfortunately, the vast majority of ICHRA administrators have designed their plans for traditional employers with a small, stable workforces and little turnover. This approach is insufficient to properly meet the needs of staffing firms and other businesses with hourly-wage, high-turnover workforces.

There are three key ways the typical ICHRA solution can cause challenges for an employer with a high-turnover workforces:

1. Pre-funding requirements: With an ICHRA, the employee enrolls and pays for their own individual ACA-compliant plan and then submits proof of payment for a monthly reimbursement from their employer. Most ICHRA administrators require the employer to pre-fund the employees’ premiums every month. This creates an administrative burden of setting up spending accounts for all eligible employees, needlessly tying up company cash flow.
2. Contribution Determination: While the ACA’s affordability threshold (9.96% of employees’ monthly wages in 2026) must be met to qualify as an ACA-compliant offer, it’s much more complicated than that when determining the lowest possible employer contribution with ICHRA and Marketplace plans.  Without the proper knowledge and technology, this process is nearly-impossible to do correctly. At best, you will end up with inefficient contribution amounts that waste money – at worst, some (or all) of your contribution amounts will be out of compliance with ACA regulations, triggering penalties.
3. Administrative cost: Many ICHRA administrators charge a Per Employee Per Month (PEPM) fee for each eligible employee. You don’t have to have an advanced degree in mathematics to know that those costs become untenable when your workforce has a 400% turnover rate.

The RightPath Solution

Fortunately, RightPath has partnered with Venteur, one of the leading ICHRA administrators, to create a custom solution that provides staffing companies with the lowest total cost ACA solution with NO claims risk.  Our solution:

1. Unique “Self-Pay” Model – No pre-funded spending accounts
2. Sophisticated technology – from one of the leading ICHRA vendors to calculate the lowest employer contributions quickly and accurately.
3. No PEPM charges

We’re extremely proud of the unique ICHRA solution we have built with Venteur to serve your industry. Use our website’s contact form or email us at info@RightPathBenefits.com to set up a time to talk. We’d love to hear about your ACA-compliance needs, objectives, and challenges and show you how the ICHRA might just be the solution you are searching for.