Employer interest in ICHRAs (now called CHOICE Arrangements) is growing, but awareness and adoption remain limited.
Employer interest in ICHRAs (now called CHOICE Arrangements) is growing, but awareness and adoption remain limited.
Employer interest in ICHRAs (now called CHOICE Arrangements) is growing, but awareness and adoption remain limited.
Common Questions
A CHOICE Arrangement (Custom Health Option and Individual Care Expense Arrangement) is the federal government’s new name for what was previously called an ICHRA, or Individual Coverage Health Reimbursement Arrangement. CMS and the SBA adopted the CHOICE name in September 2026; the rules did not change. First established by HHS in 2020, it lets employers reimburse employees tax-free for individual health insurance premiums and qualifying medical expenses — replacing or supplementing traditional group coverage.
Yes — it’s one of the biggest advantages of a CHOICE Arrangement over group plans. Employees in any state shop their local individual market. You set one contribution policy that applies everywhere, and we handle enrollment support in all 50 states.
Level funded plans work well when your workforce skews healthy and you can pass underwriting. They offer group-style administration with more cost predictability than traditional fully-insured plans and the potential for year-end refunds. We model both side by side so you can make an informed choice.
With a CHOICE Arrangement, each employee purchases individual insurance. Your reimbursement amount never changes based on employees’ health status or claims history. Someone who had a major surgery last year does not raise your cost next year — which is the fundamental difference from group underwriting.
No. A CHOICE Arrangement has no participation minimums and requires just one employee to establish. It is available to any employer of any size.
