For staffing companies, flexibility and speed aren’t just nice to have.
They’re essential.
Temp and contract workforces often see turnover rates above 400%, with workers starting, stopping, and switching jobs in days or weeks. In theory, an Individual Coverage Health Reimbursement Arrangement (ICHRA) sounds like a good fit. In practice, it hasn’t worked well for staffing.
The Practical Challenges
Too much complexity for fast-changing jobs
ICHRAs require detailed employee classifications, strict affordability calculations, and ongoing compliance management. For staffing firms with constantly shifting rosters, that complexity creates more work—not less.
Coverage gaps during transitions
When a worker’s assignment ends, ICHRA reimbursement often ends with it. That can leave employees uninsured between jobs, undermining trust and hurting retention.
Affordability is hard to maintain
To meet affordability rules, reimbursement amounts may need to be higher than what staffing margins realistically support—especially for short-term or lower-wage roles.
Why Staffing Needs a Different Approach
ICHRA also places much of the responsibility on employees: navigating individual marketplaces, comparing plans, enrolling correctly, and managing coverage on their own. For many workers, that complexity reduces perceived value and leads to frustration rather than engagement.
You Have Better Choices for Benefits
Staffing firms need benefits that move at the same pace as their workforce. Benefits in a Card (BIC) offers alternatives designed specifically for high-turnover environments, including:
- Coverage options that can start quickly, without long waiting periods
- Weekly-managed plans that align with staffing pay cycles
- Unbundled benefit designs, so you’re not forced into a one-size-fits-all package
- First-dollar coverage options and everyday value benefits like FreeRx
- In-house support and integrations that reduce administrative friction
Instead of asking employees to manage their own coverage, BIC’s approach keeps benefits simple, accessible, and easier to administer—even as your workforce changes week to week.
A Better Path Forward
If ICHRA hasn’t delivered the simplicity or stability you hoped for, you’re not alone. Many staffing companies are choosing benefits models built specifically for their realities.
Ready to explore benefits that actually work for staffing?
See our landing page for more information. Then, schedule a consultation with BIC to talk through options designed for fast onboarding, flexible coverage, and less admin friction.
