Best ICHRA Administrators for Startups: 2027 Platform Comparison
By Saif Akhtar, Co-Founder & COO, SimplyHRA. Published and last updated November 14, 2026.
What should a startup look for in an ICHRA administrator?
Startups should compare five things: the per-employee monthly fee, any setup charge, how the platform handles employees in multiple states, how it connects to payroll, and how it treats your broker. SimplyHRA charges a flat $29 per employee per month. Confirm every other vendor's current pricing on its own site before you decide.
Why startups look at ICHRA instead of a group plan or PEO
Early teams have three recurring problems with traditional group coverage: renewal increases they cannot forecast, carrier participation rules that small teams struggle to meet, and employees in different states who do not fit one regional network. An Individual Coverage HRA (ICHRA) changes the model. The company sets a fixed monthly allowance, and each employee buys an individual plan that fits their own location and doctors.
That makes the benefit a predictable line item. A founder can say "$400 per person per month" and know the number will not change at renewal.
Startup evaluation checklist
| Criterion | Why it matters for a startup | What to ask each vendor |
|---|---|---|
| Admin fee model | Flat per-employee fees stay predictable as you hire | Is the fee flat, or tied to allowance or premium size? |
| Setup and onboarding fees | One-time charges hit cash when runway is tight | Is there any setup, implementation or minimum fee? |
| Multi-state support | Remote hires live in many rating areas | Can allowances vary by class and location? |
| Payroll connection | Manual census and deduction updates cost hours each month | Which payroll tools are supported, and how (file export, direct sync)? |
| Broker treatment | Some founders work with a broker, some do not | Does the platform protect broker of record status? |
| Employee experience | Employees must shop an individual market | Is there plan-shopping help and a reimbursement portal? |
How SimplyHRA answers these questions
- Flat $29 per employee per month, published on the pricing page.
- Allowances can be set by permissible employee class. See Permissible Employee Classes.
- Works alongside Gusto payroll. Read the Gusto integration guide for the exact data flow.
- Head-to-head pages exist for Thatch and other vendors so you can compare directly.
Worked example: a 15-person team
The numbers below are an illustration, not a quote. Your premiums, allowance and payroll costs will differ. We use a $400 monthly allowance and the published $29 fee.
| Line item | Monthly | Annual |
|---|---|---|
| Employer allowance (15 x $400) | $6,000 | $72,000 |
| SimplyHRA platform fee (15 x $29) | $435 | $5,220 |
| Total employer cost | $6,435 | $77,220 |
The point is the shape of the cost, not the total: allowance plus a flat fee, with nothing that moves at renewal. Compare it with your current invoice line by line, including any PEO administrative fee, before you decide.
Remote and multi-state hiring
ICHRA rules let employers define classes, such as full-time versus part-time or by geographic rating area, and set a different allowance for each. Age-based variation is allowed but capped: the oldest employee in a class cannot receive more than 3 times the allowance of the youngest. See Age-Banded ICHRA Allowances. Always have class design reviewed before launch.
See SimplyHRA on a real startup roster
Walk through allowances, classes and payroll export with our team in a short call.
Book a demo →Pick the path that fits where you are
Let me try it: Book a walkthrough demo.
Let me research: Review the pricing page and the ICHRA vendor pricing comparison.
I have questions: Ask Tamara, our AI guide, or book time with Saif to talk through your team.
Frequently Asked Questions
Is an ICHRA a good fit for a startup with remote employees in several states?
Often yes. Employees pick individual plans in their own state, and the employer sets allowances by permissible class (for example by rating area). You still need to confirm class rules and state requirements for each location before launch.
How is an ICHRA different from a PEO health plan?
A PEO becomes a co-employer and bundles payroll, HR and a master health policy under one fee. An ICHRA is only the health benefit: you set a monthly allowance and employees buy individual coverage, with no co-employment relationship.
What does SimplyHRA charge?
SimplyHRA's published price is $29 per employee per month. See the pricing page for current terms.
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