One-size-fits-all group insurance, selected by employers, no longer makes sense for female employees with unique and ever-evolving health needs.
From family planning and pregnancy, to menopause and beyond, women’s health needs are always evolving. Having the right insurance at every stage of life is critical—yet women across the U.S. continue to face challenges when it comes to accessing affordable healthcare.
Employed women spend $15 billion more each year on out-of-pocket healthcare costs than employed men, according to new research from Deloitte. Pregnancy and childbirth expenses often fall exclusively on mothers. In 2025, the average out-of-pocket cost for child delivery was close to $3,000.
Even without maternity claims, the financial gap is significant: For all the medical claims reviewed by Deloitte, women paid 20 percent more than men in out-of-pocket expenditures.
Luckily, employers can help narrow the gap and take better care of female employees with a new approach to health benefits. With traditional group insurance, employees typically have just a few plans to choose from, none of which are a guaranteed fit. As a result, many women are forced onto a plan that fails to meet their medical needs, leaving them with high costs but still missing the support that matters most.
By switching group insurance to an individual coverage health reimbursement arrangement (ICHRA), companies can provide flexible and affordable benefits that meet women where they are.
The Right Coverage for Every Life Stage
With ICHRA, employers provide employees with pre-tax dollars to spend on individual health insurance premiums and, in some cases, qualified expenses. ICHRA doesn’t lock women into a group plan selected by their employer. Instead, women can choose from a wide range of carriers and policies on the individual market, ensuring they get coverage that meets their needs.
The flexible nature of ICHRA is particularly beneficial for women planning to start a family. With control over their coverage, women can move to a plan with low deductibles and out-of-pocket costs in preparation for pregnancy.
One employee at a Texas-based technology company explained how the freedom to switch plans under ICHRA helped her manage the cost of her pregnancy and birth.
“When I had my son, I re-shopped for a more comprehensive plan that had a copay for in-patient birth,” she shared. “This was huge as I only needed to pay my deductible—which I met early with all the appointments—and a $1,500 co-pay. Even with having an unplanned C-section, that was the total amount I paid for my birth.”
ICHRA provides consistency in women’s healthcare, even when policies change. By selecting a plan based on in-network providers, women can get the right level of coverage while maintaining access to their preferred healthcare specialists.
What’s more, because each employee owns their policy, they can take it with them if they go on a career break, change jobs or become self-employed.
How ICHRA Supports Women’s Health
Balancing multiple roles and responsibilities, women often struggle to prioritize their own well-being. When healthcare is stressful or expensive, we’re even less likely to seek the support we need.
ICHRA helps women put their health first by providing access to trusted provider networks and controlling out-of-pocket costs.
Here’s how ICHRA supports four areas of women’s health and well-being:
1. Preventative Screenings
Regular health screening can be life-saving, yet over 40 percent of American women have delayed or missed recommended tests, according to a Hologic-Gallup survey. Anxiety around medical checks is one of the main reasons why women put off vital screening. Other women simply don’t have time to arrange and attend appointments.
An employee in her 50s explained how getting her mammogram is easier and less stressful with an ICHRA. “I’m able to choose the same medical facility that I’ve used since I had my very first baseline mammogram at 35,” she told me. “Now, at 50, I have a collection of X-rays housed in the same system, with the same X-ray provider that I’m comfortable using. It’s a game changer not having to switch around to different providers for my scans, which is already a somewhat anxiety-inducing process.”
2. Pregnancy and Childbirth
Pregnancy is a deeply personal experience. Having access to familiar doctors and facilities offers comfort and reassurance throughout the journey to childbirth. ICHRA allows mothers to visit the same obstetrician at the same hospital for each pregnancy, while those with group insurance may have to build relationships from scratch if their employer changes providers or plans.
When considering pregnancy, women with an ICHRA can make sure their plan covers prenatal and postnatal care, as well as newborn services. This freedom to switch plans empowers women with the support they need throughout their pregnancy and during the first months of motherhood.
3. Mental Health
Women are around twice as likely to be diagnosed with depression as men, according to Johns Hopkins Medicine. Hormonal changes and the pressures of motherhood leave women vulnerable to anxiety and stress. ICHRA supports women’s mental health by allowing them to select a plan that covers counseling and other treatments they need.
For one tech employee, having an ICHRA meant she was finally able to prioritize her mental health. “I had never been to a counselor and wanted to use my HRA for some professional counseling,” she shared. “It was helpful to talk to someone about my experiences of being a working mom with a child who had some medical issues. It was great, and my HRA paid for it all.”
4. Qualified Medical Expenses
With ICHRA, employers can opt to reimburse employees for qualified medical expenses in addition to insurance premiums, always tax-free. Women with generous allowances can spend any remaining dollars on eligible expenses, including menstrual products, prescription birth control pills and chiropractic care. These small reimbursements can have a big impact on women’s overall health, encouraging them to seek treatments they may otherwise go without.
Qualified medical expenses also help manage the cost of raising a family.
“Many things that baby and mom will need are reimbursable: milk storage bags, some baby monitors, portable breast pumps, etc.,” explained one new mother. Children’s medications, dental treatment, and psychologists are also reimbursable.
Why Choice Matters
One-size-fits-all group insurance, selected by employers, no longer makes sense for female employees with unique and ever-evolving health needs. ICHRA supports women’s well-being at every chapter, providing consistent access to preferred providers and the ability to switch plans when priorities change.
As employers across sectors embrace this new approach, more women stand to benefit from customizable coverage.
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