2027 ICHRA Renewal: Budget and Geographic Contributions
Make the 2027 renewal decision with one verified census, a fixed employer budget and a clear view of each employee’s local market.
Start a renewal analysis →For a multistate workforce, an annual renewal is a row-by-row decision. Start with the employer budget, then test employee cost, market access and the data needed to implement the result.
Reconcile the census
Confirm each employee’s work location, home ZIP, coverage tier, dependent count and current contribution. Resolve conflicting fields before counting members or sending the administrator a change file.
Fix the employer budget first
Calculate the total monthly allowance budget and its annual equivalent. A geographic schedule can redistribute that total, but the sum of every employee allowance must reconcile to the approved cap.
Test geography at the employee level
Group employees by applicable rating area and available plan choices. Compare the proposed allowance with a relevant local benchmark and the employee’s projected premium share. A national average can hide a difficult local result.
Review outliers and affordability
Identify employees who gain, remain near current cost or need review. Examine network fit and household impacts. Run the applicable ICHRA affordability test separately; a lower premium share alone does not establish compliance.
Validate and hand off
Replace estimates with verified plan premiums and final benchmark data. Export a census-level file showing current and proposed allowance, selected plan, premium, employee cost and a completion status. Reconcile counts and totals with the administrator before launch.