# What the 2026 HRA contribution figures mean for an employer budget Canonical reader page: https://ichrareport.com/research/hra-contribution-data-2026/ Publisher: ICHRA Report Originally published: 2026-09-12 Substantively updated: 2026-09-12 Sources checked: 2026-09-11 Data period: Source report released August 12, 2026 [Home](https://ichrareport.com/) [Research](https://ichrareport.com/research/) What the 2026 HRA contribution figures mean for an employer budget Contribution analysis How much are employers offering toward coverage? This analysis explains the HRA Council's reported contribution and premium figures, who they describe and why a middle value in a dataset is not a recommended budget for your employees. At a glance Evidence **Analysis of external evidence** Event / data period **Source report released August 12, 2026** Review cutoff **September 11, 2026** By [ICHRA Report](https://ichrareport.com/about/) · Published September 12, 2026 Research conclusion A published contribution median is a reference point, not a recommendation for an employer’s allowance. The unit of measurement and local workforce matter as much as the dollar amount. ## The reported figures Page 6 of HRA Council’s 2026 report presents a $459 median allowance, $567 median premium and $105 median “flex up,” each per covered life. The chart covers ICHRA and QSEHRA, on- and off-Exchange, and reports an 81% allowance-to-premium ratio. These are sample measures, not an ICHRA-only national employer benchmark. [source](https://www.hracouncil.org/resources/Documents/2026%20HRA%20Council%20Data%20Report%20-%20PDF%20Version.pdf) ## Start with the unit An allowance per covered life is not necessarily an allowance per employee. A household containing dependents can produce a very different per-person result from an employee-only household. The employer needs to know whether its budget is defined per eligible employee, participating employee, policy, household or covered person. For illustration, an employer budgeting $600 for a participating employee’s household has not necessarily committed $600 for each covered person. Recasting the amount without changing the denominator would create a misleading comparison. This example explains the unit; it is not a contribution recommendation. ## Why subtracting the medians can mislead The two published medians produce an arithmetic difference of $108. That does not establish an error in a separately reported $105 median gap. In general, the median of paired differences is not equal to the difference between two medians. A simple illustrative dataset shows why. Suppose three paired allowances and premiums are $100/$200, $200/$210 and $300/$1,000. The allowance median is $200 and the premium median is $210: a $10 difference. But the individual gaps are $100, $10 and $700, whose median is $100. These are invented numbers used solely to demonstrate the mathematics. ## Build the employer’s budget from its own inputs Start with the workforce’s locations, ages, household assumptions and eligible classes. Obtain premiums for the relevant plan year and geography. Then compare the employer’s total cost and the employee’s premium exposure across contribution scenarios. The IRS’s 2027 required contribution percentage is 10.22%; it is a compliance input, not a national competitive-benefit target. CMS’s reviewed lookup dictionary describes 2026 data and its platform coverage. A 2026 lookup should not silently become a 2027 premium assumption. [source](https://www.irs.gov/irb/2026-31_irb) [source](https://www.cms.gov/files/document/ichra-employer-lowest-cost-silver-plan-premium-look-up-table-data-dictionary.pdf) HealthCare.gov explains the permitted ICHRA contribution structure. Once a design satisfies applicable requirements, a separate judgment remains: will employees consider the benefit useful and workable for their needs? [source](https://www.healthcare.gov/small-businesses/learn-more/individual-coverage-hra/) ## What a stronger benchmark would include An employer needs matched comparisons by geography, age, household, employer size and benefit design, with counts and missing-data disclosures. Ideally the evidence would also describe what employees actually paid, whether they enrolled and what happened at renewal. ICHRA Report has not collected that proprietary dataset. This analysis establishes a disciplined way to use external figures while identifying the fields needed for future original research. See the [contribution modeling guide](https://ichrareport.com/research/ichra-contribution-benchmarks/) for the broader process. ## Sources and evidence [1 HRA Council — Growth Trends for ICHRA & QSEHRA, Volume Five Full 14-page report reviewed, including tables on pages 6, 8–10 and methodology on page 13. January 31 observation date; contributed records, estimated covered lives, and matched-cohort growth have different denominators. Source reviewed 2026-09-11](https://www.hracouncil.org/resources/Documents/2026%20HRA%20Council%20Data%20Report%20-%20PDF%20Version.pdf)[2 Internal Revenue Service — Revenue Procedure 2026-26 Section 3.02 sets the required contribution percentage at 10.22% for plan years beginning in 2027. Section 5 establishes the effective period. Source reviewed 2026-09-11](https://www.irs.gov/irb/2026-31_irb)[3 HealthCare.gov — Individual Coverage Health Reimbursement Arrangements Federal overview of ICHRA contributions, employee classes, class-size minimums, affordability, and implementation timing. Source reviewed 2026-09-11](https://www.healthcare.gov/small-businesses/learn-more/individual-coverage-hra/)[4 CMS — ICHRA premium lookup data dictionary Reviewed dictionary describes 2026 lowest-cost Silver data and geographic/platform scope. It is not a verified 2027 premium table. Source reviewed 2026-09-11](https://www.cms.gov/files/document/ichra-employer-lowest-cost-silver-plan-premium-look-up-table-data-dictionary.pdf) Review dates are recorded for each source above. Company pages are useful for confirming how a product is described, but they do not prove service quality or customer results.