Running a seasonal business means your workforce swells in peak months and shrinks the rest of the year. Traditional group health insurance was not built for that rhythm. You pay a fixed premium regardless of headcount, and adding or dropping employees mid-year creates headaches that most small business owners would rather avoid.
An Individual Coverage Health Reimbursement Arrangement, or ICHRA, offers a different model. Instead of picking a single group plan for everyone, the employer sets a monthly budget and reimburses employees tax-free for the individual health plans they choose on their own. The employee picks the coverage that fits their situation. The employer pays a predictable amount. Nobody is stuck with a one-size-fits-all plan that does not actually work for them.
How ICHRAs work for seasonal businesses
Here is the core idea. The employer defines a fixed monthly contribution for each employee class. During peak season, when you have a full crew, you offer the benefit to everyone on payroll. When the off-season hits and your team scales down, your costs scale down with them. You are not locked into paying premiums for a large group plan when half your staff is gone for the month.
ICHRAs are available to employers of any size. There is no minimum employee count, and there is no cap on how much an employer can contribute. That means a landscaping company with five seasonal workers can offer the same tax-advantaged benefit structure as a resort with fifty.
EBRI research shows that ICHRAs are expanding access to health coverage particularly among small businesses. Rather than displacing traditional group plans at larger firms, ICHRAs are filling a gap that group insurance never addressed well for smaller and seasonal employers.
Why choice-based platforms matter
The “choice-based” part of an ICHRA is what makes it genuinely different from a traditional group plan. Under a group plan, the employer picks one option and everyone takes it or leaves it. Under an ICHRA, employees browse the individual market and select the plan that fits their health needs, their budget, and their preferred doctors and hospitals.
That choice produces real benefits for seasonal businesses:
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Employees get coverage they actually use. A young seasonal worker might choose a low-cost high-deductible plan. A worker with a family might pick a broader network. Everyone gets what they need instead of settling for what the group plan happens to offer.
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Administrative burden drops. There is no group plan to manage, no open enrollment period to coordinate, and no COBRA headaches when employees transition off payroll. The platform handles enrollment and the employer handles reimbursement.
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Recruitment gets easier. Seasonal employers compete for workers every year. Offering a health benefit that lets employees choose their own plan is a competitive edge over employers who offer nothing or a limited group option.
The cost predictability seasonal businesses need
The average employer ICHRA contribution for self-only coverage is projected to be around $610 in 2026, which can cover a significant portion of lower-cost individual plan options in the marketplace. Employers set the budget. If the budget does not work for a given month or season, the employer adjusts it within the rules.
That predictability is what seasonal business owners tell us they value most. You know exactly what your benefit costs will be each month, and you can scale that number up or down as your workforce changes. No surprise renewal increases. No paying for coverage nobody is using.
Getting started
If you run a seasonal business and the group health insurance model has never quite fit, an ICHRA with a choice-based platform is worth exploring. A local licensed insurance agent can walk you through the structure, help you set contribution levels that work for your budget, and make sure the setup complies with federal rules.
Trek Insurance Solutions helps employers in 19 states design and implement ICHRA programs that fit their workforce. Whether you have three seasonal employees or fifty, we can show you how a choice-based approach cuts costs while giving your team real coverage options.
888-960-0442 · trekis.net · Licensed in 19 states.