ICHRA vs. Group Insurance: Which is Better for Your Growing Startup?
As a startup founder, you are operating in a world of rapid growth and constant pivot. You are scaling your team, managing your burn rate, and trying to build a culture that attracts the brightest minds in the industry. One of the most critical crossroads you will reach is deciding how to provide medical benefits. The traditional model of group health insurance has been the standard for decades, but a newer contender—the Individual Coverage Health Reimbursement Arrangement (ICHRA)—is changing the game for agile companies. Choosing between these two isn't just a HR decision; it is a strategic financial move that affects your ability to scale. Let's look at how these two models compare so you can decide which fits your startup's trajectory. The Traditional Path: Group Health Insurance Group health insurance is what most people picture when they think of "company benefits." You, as the employer, select a specific plan (or a small menu of plans) from an insurance carr...