Can You Use ICHRA for 1099 Employees? No—But This Is What You Can Do.

<blog-icon-title>Can You Use ICHRA for 1099 Employees? No—But This Is What You Can Do.<blog-icon-title>

As more companies rely on independent contractors, freelancers, and gig workers, one truth has become clearer and clearer: the old playbook for employee benefits doesn’t always apply. But that doesn't mean employers no longer have a role in the equation.

While ICHRA may not be the solution (something we don’t say very often!), a lot of the tools built to support ICHRA can also support your independent contractors—without requiring a formal benefit or financial contribution toward health coverage.

Of course, it’s worth noting: if a contractor qualifies for premium tax credits based on their income, they should absolutely use them to lower their costs on the Exchange. But for those who don’t, forward-thinking organizations can still offer real value. With guided insurance shopping experiences—like those offered through Zorro’s intuitive, AI-powered platform—you can support 1099 talent in new, meaningful ways.

The Challenge: Coverage Without a Compass

Most independent workers are on their own when it comes to health insurance. They face a fragmented system, confusing jargon, and no clear support. As a result, they may struggle to find optimal coverage for their needs or forgo it altogether. 

And while employers aren’t required to provide insurance for 1099 employees, they can still provide clarity and confidence.

The Zorro Solution: A Personalized Experience, Not Just a Public Marketplace

Zorro's platform helps contractors navigate their insurance options with the kind of support traditionally reserved for full-time employees—no contribution required.

When you extend access to Zorro to 1099 employees, your contracted workforce gets: 

• A personalized insurance shopping experience that matches users with the right plans based on their location, unique needs, and personal budget.
• Unbiased, customized plan recommendations not tied to one carrier or broker.
• Live support from licensed enrollment experts who can walk users through their options and provide 1:1 assistance as needed.
• Ongoing help year-round, not just during open enrollment.

It's a seamless, stress-free way to access coverage, and it reflects well on you. 

By helping contractors solve one of their most stressful personal challenges—choosing health care coverage—you strengthen relationships and signal that you're invested in their well-being. That kind of support builds trust, encourages loyalty, and reduces churn in a segment of the workforce that’s often hard to engage on a long-term basis.

Why This Matters Now

As the labor market becomes more fluid and decentralized, companies that show up differently for their people will have the edge. Offering a guided benefits experience through Zorro shows your contractors that you value their health, their time, and their work. In fact, it's one of the most high-impact, low-lift recruiting tools available.

In a world where independent workers are often left to navigate coverage alone, offering guidance is how modern employers stand out.