So now what? Do your clients just accept higher premiums for an entire year?
Not necessarily.
If your clients are willing to take that tough renewal for just one month, they can still make the switch to an ICHRA with a February 1 effective date. And yes, the math actually works in their favor. Here’s how to position this with your large group clients.
Step 1: Plan Ahead for a February 1 Start Date
To ensure your employees can enroll in their new ICHRA plans in time for a February 1 effective date, it is crucial to begin the process as soon as possible. Meet with a SureCo professional by mid November to get everything in place for a Special Election Period at the end of December. Your onboarding form must be signed by December 3.
Step 2: Extend the Current Plan for One Month
Take the renewal from your traditional group health insurance for January only. Your clients will pay that higher rate for 30 days, but it's far better than eating the cost for the entire year.
Step 3: Push to a February Effective Date
Your client’s employees will enroll in their ICHRA plans during a special enrollment period between December 16-23, 2025, with coverage starting February 1.
Step 4: Leverage the Special Election Period
When your clients adopt an ICHRA, it creates a Special Election Period (SEP) for their employees. This means they can move to an ICHRA with one month of effective coverage, the deductible resets, and then they have almost the full year after that.
Please be aware that this transition strategy requires your client to conduct two separate Open Enrollment periods in a short timeframe:
Traditional Group Plan Enrollment: Conducted in the fall for a January 1 renewal (taking only one month of coverage)
ICHRA Open Enrollment: Conducted in December for a February 1 effective date
While managing two Open Enrollments back-to-back requires additional coordination (with the help of SureCo), this approach allows your client to avoid paying inflated renewal rates for an entire year and positions employees for a smooth transition to their new ICHRA benefits.
This is the question brokers tell us they hear most often from their HR contacts: "I’m worried about disrupting our team, explaining the deductible reset, and managing the transition.”
Employees understand the reasoning. When you explain that you're making this move to save costs and give them better options, they get it. Most employees have dealt with their own insurance headaches and appreciate transparency.
The closer in the year, the less of an issue. A February 1 start is actually easier for employees than you'd think, and most are pleasantly surprised by the flexibility and choice an ICHRA provides.
Education is key. As long as they properly educate employees (e.g., "Don't plan major surgeries in January because of the deductible reset"), it tends to be fairly well tolerated by most groups, if not all groups.
Let's make this concrete:
Again, the math works in their favor.
If you're interested in a February 1 effective date for one of your large group clients, talk to a SureCo advisor today. We'll need to start the process as soon as possible to ensure a smooth transition for everyone involved.
The window is tight (mid/late November), but it's absolutely doable, and your clients will thank you for it.
Special Note: We work with several groups every year that do 2/1 effective dates. It's a proven path, and your clients will appreciate the long-term savings and flexibility.
Meet with a SureCo advisor here.