{
  "id": "compare-administrator-fees",
  "version": "1.0.0",
  "model_version": "1.0.0",
  "path": "/methods/compare-administrator-fees/",
  "title": "How to compare ICHRA administrator fees",
  "intro": "Two ICHRA administrators can quote different prices because they charge for different people and services. This method helps employers and brokers compare the fees in written proposals using the same workforce and time period.",
  "method_reviewed_at": "2026-09-13",
  "purpose": "Work out the administrator service fees you would pay under each proposal, then identify which missing terms or assumptions could change the comparison. Start with your own written proposals; the example below is fictional.",
  "applicability": [
    "You are an employer or broker comparing administrator proposals, rather than shopping for an employee's insurance policy.",
    "The proposal charges a fixed monthly amount, a monthly rate for either eligible employees or enrolled participants, or both. It may also specify minimum paid seats, extra billable accounts, a monthly fee minimum, setup fees and other charges for the period.",
    "The employee counts and rates stay constant for the same 1–12 whole months in each scenario. Use US dollars. If a contract needs a different calculation, ask for a written cost illustration using its actual terms."
  ],
  "steps": [
    "Choose one comparison period and count eligible employees. Separately estimate how many will enroll. Use these same assumptions across the proposals.",
    "Confirm who each administrator bills: all eligible employees or only enrolled participants. Ask whether administrator accounts or other people are billed in addition, and avoid counting an account twice.",
    "Record the fixed monthly fee, monthly rate per billable person, minimum paid seats, additional billable accounts, minimum monthly fee, setup fee and other fees for the entire period. Keep the proposal reference beside each term. Enter zero only when no charge is confirmed; a blank means unknown.",
    "Calculate each proposal with the equations below. A minimum number of seats and a minimum monthly fee are separate contract terms; neither should be substituted for the other.",
    "Compare the included services, effective dates and unresolved terms before drawing a conclusion. Repeat the calculation with another plausible enrollment count if your estimate is uncertain."
  ],
  "missing_information": [
    {
      "condition": "The quote says 'per employee' without defining who is charged.",
      "status": "needs_input",
      "action": "Ask: Does the rate apply to eligible employees, enrolled participants, or another population? Are administrator accounts billed separately? Confirm the answer before calculating."
    },
    {
      "condition": "A fee field is blank, or the proposal does not explain a minimum or setup fee.",
      "status": "needs_input",
      "action": "Ask for the complete fee schedule and whether that specific charge is zero. Do not fill the gap with zero."
    },
    {
      "condition": "The quote uses tiered rates, mid-month changes or another rule this calculation cannot represent.",
      "status": "unsupported",
      "action": "Request a cost illustration for the same workforce and period using the actual contract rules. This method cannot establish a comparable total for that quote."
    },
    {
      "condition": "The inputs have more participants than eligible employees, fractional people, negative fees or a period outside 1–12 whole months.",
      "status": "invalid",
      "action": "Correct the inconsistent input or use a method that supports the intended scenario. An invalid input does not produce a usable total."
    }
  ],
  "fictional_quotes": [
    {
      "id": "a",
      "label": "Fictional quote A",
      "inputs": {
        "basis": "enrolled",
        "base": 5000,
        "pepm": 2500,
        "seats": 3,
        "extra": 0,
        "minimum": 0,
        "setup": 10000,
        "other": 24000
      }
    },
    {
      "id": "b",
      "label": "Fictional quote B",
      "inputs": {
        "basis": "eligible",
        "base": 0,
        "pepm": 2000,
        "seats": 0,
        "extra": 0,
        "minimum": 0,
        "setup": 0,
        "other": 0
      }
    }
  ],
  "result_checks": [
    "Keep the eligible and enrolled counts, comparison period, quoted terms, proposal references and any assumptions with the result.",
    "Keep the method and calculation versions. The worksheet's CSV download includes the numeric inputs, modeled totals, formula and version. Add your private proposal references and unresolved service differences to your own copy; they are not collected by this site.",
    "If a term or estimate changes, save a new result so you can explain why the comparison changed.",
    "Lower modeled administrator fees do not establish lower total benefit spending or better service. Compare coverage, reimbursement spending, support and implementation separately."
  ],
  "resources": [
    {
      "path": "/tools/compare-ichra-quotes/",
      "label": "Use the administrator fee worksheet",
      "purpose": "Enter your own terms, test a different enrollment count and download a local CSV result."
    },
    {
      "path": "/guides/compare-ichra-provider-quotes/",
      "label": "Compare the full administrator proposals",
      "purpose": "Check service scope, responsibilities and the questions that a fee total cannot settle."
    },
    {
      "path": "/research/provider-pricing-transparency-2026/",
      "label": "Read the dated public pricing audit",
      "purpose": "See what six brands disclosed on the inspected public pages. This is not a live quote or the source of the fictional prices above."
    }
  ],
  "schema": "ICHRA Report decision method, local schema v1",
  "canonical_url": "https://ichrareport.com/methods/compare-administrator-fees/",
  "input_units": "All numeric inputs are integers. Fee inputs use USD cents; people and periods use whole counts. Missing is null or omitted, never an implied zero.",
  "billing_basis": {
    "type": "enum",
    "values": [
      "eligible",
      "enrolled"
    ],
    "missing": null
  },
  "execution": {
    "function": "IchraQuoteModel.calculate(workforce, quote)",
    "meaning": "Optional local reuse of the same browser model. Read the method and confirm contract terms before mapping inputs. No server request is required.",
    "output_states": {
      "complete": "All supported inputs supplied; total is modeled administrator fees, not an overall provider recommendation.",
      "needs_input": "A required input is absent; consult issues and resolve it before comparison.",
      "invalid": "One or more inputs are inconsistent or outside the supported bounds; no total is returned.",
      "unsupported": "The billing population cannot be represented; no total is returned."
    },
    "complete_result_units": {
      "seats": "people/accounts",
      "monthly": "USD cents per month",
      "recurring": "USD cents for the period",
      "total": "USD cents for the period, including setup and other period fees"
    },
    "failure_result": "Issues identify the input, state and needed correction. No numeric total is a usable result when status is not complete."
  },
  "numeric_inputs": {
    "eligible": {
      "label": "Eligible employees",
      "unit": "people",
      "min": 0,
      "max": 100000,
      "group": "workforce"
    },
    "enrolled": {
      "label": "Expected participants",
      "unit": "people",
      "min": 0,
      "max": 100000,
      "group": "workforce"
    },
    "months": {
      "label": "Comparison period",
      "unit": "months",
      "min": 1,
      "max": 12,
      "group": "workforce"
    },
    "base": {
      "label": "Fixed monthly fee",
      "unit": "USD cents per month",
      "min": 0,
      "max": 1000000000,
      "group": "quote"
    },
    "pepm": {
      "label": "Monthly fee per billable person",
      "unit": "USD cents per person per month",
      "min": 0,
      "max": 1000000000,
      "group": "quote"
    },
    "seats": {
      "label": "Minimum paid seats",
      "unit": "people/accounts",
      "min": 0,
      "max": 100000,
      "group": "quote"
    },
    "extra": {
      "label": "Additional billable accounts",
      "unit": "people/accounts",
      "min": 0,
      "max": 100000,
      "group": "quote"
    },
    "minimum": {
      "label": "Minimum monthly fee",
      "unit": "USD cents per month",
      "min": 0,
      "max": 1000000000,
      "group": "quote"
    },
    "setup": {
      "label": "Setup fee",
      "unit": "USD cents once",
      "min": 0,
      "max": 1000000000,
      "group": "quote"
    },
    "other": {
      "label": "Other period fees",
      "unit": "USD cents for the whole period",
      "min": 0,
      "max": 1000000000,
      "group": "quote"
    }
  },
  "equations": [
    "billable seats = max(minimum paid seats, selected employee population + additional accounts)",
    "monthly fee = max(monthly minimum, fixed monthly fee + per-person monthly rate × billable seats)",
    "period total = monthly fee × months + setup + other period fees"
  ],
  "exclusions": [
    "Changing populations or fees",
    "Tiered rates",
    "Proration or partial months",
    "Taxes",
    "Unmodeled discounts",
    "Internal HR costs",
    "Insurance premiums",
    "Actual reimbursements",
    "Service-quality rankings"
  ],
  "examples": [
    {
      "id": "twelve-participants",
      "label": "12 participants",
      "workforce": {
        "eligible": 20,
        "enrolled": 12,
        "months": 12
      },
      "results": [
        {
          "quote_id": "a",
          "status": "complete",
          "method_id": "compare-administrator-fees",
          "model_version": "1.0.0",
          "fee_unit": "USD cents",
          "seats": 12,
          "monthly": 35000,
          "recurring": 420000,
          "total": 454000,
          "issues": []
        },
        {
          "quote_id": "b",
          "status": "complete",
          "method_id": "compare-administrator-fees",
          "model_version": "1.0.0",
          "fee_unit": "USD cents",
          "seats": 20,
          "monthly": 40000,
          "recurring": 480000,
          "total": 480000,
          "issues": []
        }
      ]
    },
    {
      "id": "thirteen-participants",
      "label": "13 participants",
      "workforce": {
        "eligible": 20,
        "enrolled": 13,
        "months": 12
      },
      "results": [
        {
          "quote_id": "a",
          "status": "complete",
          "method_id": "compare-administrator-fees",
          "model_version": "1.0.0",
          "fee_unit": "USD cents",
          "seats": 13,
          "monthly": 37500,
          "recurring": 450000,
          "total": 484000,
          "issues": []
        },
        {
          "quote_id": "b",
          "status": "complete",
          "method_id": "compare-administrator-fees",
          "model_version": "1.0.0",
          "fee_unit": "USD cents",
          "seats": 20,
          "monthly": 40000,
          "recurring": 480000,
          "total": 480000,
          "issues": []
        }
      ]
    }
  ],
  "calculation_sha256": "fb0251ceb7046c804e2c5a82ffb4915dbf61db3329f625c99467cf6c8cee1bc3",
  "calculation_url": "https://ichrareport.com/assets/js/quote-model.js"
}