Labs: Employer-First Healthcare Innovation

August 28, 2025
10 AM PT / 1 PM ET
Virtual Event

The employer-sponsored healthcare market is undergoing a rapid seismic shift, driven by the explosive rise of Individual Coverage Health Reimbursement Arrangements (ICHRA) and novel funding mechanisms and benefit designs. The current group insurance model has left the industry at its breaking point. Insurance premiums are now exceeding $25,000 annually, rising 22% over the past five years. 

Legacy insurers are repositioning. Oscar Health’s CEO has called for ICHRA to replace group plans; Centene has launched a dedicated division with plans priced 20% below market; and UnitedHealthcare is scaling back small group offerings. Humana and Cigna have exited the small group market entirely. This shift is creating major opportunities for startups to gain ground. Fortune 500 companies are now issuing ICHRA RFPs for tens of thousands of employees—one as large as 104,000 covered lives—signaling that ICHRA is moving from a small-business solution to a mainstream strategy for large enterprises.

For investors, ICHRA is more than a healthcare innovation—it’s an entry point to a $1.6 trillion market. It opens the door to investments in personalized health, AI-powered plan guidance, and integrated financial services. With 83% of adopters offering benefits for the first time and 29% annual growth, early-stage companies are building the infrastructure for a post-group-plan future. The transformation is already in motion—the question is who will capture the value as healthcare becomes portable, personalized, and technology-driven.