This 10-Person Company Cut Their Health Bill in HALF

A small company with ten employees was spending over $100,000 a year on group health insurance. That's a brutal number for any small business. Then they made one change — and cut that bill in half. Over $50,000 in savings. Same ten employees. Better coverage. Here's how they did it.

The Problem With Traditional Group Health Insurance

Group health insurance sounds simple. One plan, everyone's covered. But that simplicity comes at a steep price.

First, the cost. Group premiums have been climbing for years. Small businesses often pay $10,000 to $15,000 per employee annually — sometimes more. And every renewal, that number goes up.

Second, it's one-size-fits-all. A 28-year-old single employee and a 45-year-old with three kids get the same plan. That's not flexibility — that's waste.

Third, the coverage isn't even portable. If an employee leaves your company, they lose their plan. Then they're stuck dealing with COBRA — which is expensive and confusing. That's a stressful situation you're putting your people in through no fault of their own.

What They Switched To: ICHRA

The company switched to an Individual Coverage Health Reimbursement Arrangement — better known as an ICHRA.

Here's how it works:

• The employer sets a defined contribution amount — whatever fits the budget.
• Each employee uses that money to shop for and purchase their own individual health insurance plan.
• The plan must have Minimum Essential Coverage (MEC) to qualify for reimbursement.
• The employer reimburses employees tax-free for their premiums.

That's it. No more negotiating with a broker over a group plan nobody loves. No more brutal renewal surprises. The employer controls the budget. Employees control their coverage.

Why ICHRA Beats Group Insurance for Small Businesses

No Contribution Limits

Unlike a QSEHRA — which caps contributions at $6,450 per year for individuals in 2026 — an ICHRA has no maximum. The employer sets whatever amount makes sense for the business.

Real Flexibility for Employees

Every employee picks the plan that fits their life. A young, healthy employee might choose a lower-cost plan. A parent with kids might choose something with broader coverage. Everyone wins.

Employees Keep Their Coverage

This is a big one. With an ICHRA, employees own their individual health plan. If they leave your company, they keep their coverage. No COBRA scramble. No coverage gap. That's a benefit employees genuinely value — and it makes recruiting easier too.

Predictable Costs for Employers

You decide what you contribute. That number doesn't change unless you change it. No surprise renewal increases. No insurance company dictating your budget.

The Bottom Line

This ten-person company didn't cut corners on benefits. They got smarter about how they delivered them. Switching to ICHRA through The Benefit X-Change gave their employees more choice, more ownership over their coverage, and saved the business over $50,000 in a single year.

If you're a small business owner still paying group insurance premiums, it's worth asking: what could your business do with that money back?

Ready to see what ICHRA could save your business? Visit benefitx.com to learn more and get started today.