Signal Small employers lead adoption while large-employer uptake grows faster

Summary

Small businesses are leading the adoption of ICHRA health benefits, but uptake among larger employers is growing faster. CB Insights reports that small employers with fewer than 50 staff use the model to make benefit costs predictable and to cut administrative work. Their adoption rose 18 percent year over year between 2024 and 2025. Adoption among employers with 50 or more staff grew 34 percent over the same period, as similar cost pressures reach larger organisations. Investors with ties to large employers are also backing ICHRA startups, including the venture arms of JPMorganChase and ADP and a fund whose backers include major insurers. These signals suggest the model is spreading beyond its small business base.