For years, employer groups have embraced the idea of adopting a defined contribution health insurance delivery model to better manage and control what in many cases is the second-largest expense in their budget.

In an ICHRA, employees choose their own health care coverage from a wide array of individual marketplace insurers and plans. Meanwhile, employers set aside a certain amount of money to reimburse employees for the premiums of the plans they select.

Year after year, for many employers it’s the same story. The cost of employee benefits keeps rising, causing many companies to look for ways to plug the leak. This often means reducing benefits and shifting more of the cost to employees, but it doesn’t have to.