The Centers for Medicare and Medicaid Services (CMS) renamed individual coverage health reimbursement arrangements (ICHRAs) as CHOICE Arrangements, short for Custom Health Option and Individual Care Expense Arrangement.
CMS also published a CHOICE Arrangement fact sheet. It confirms that employers may contribute the same fixed amount toward coverage for every enrolled employee, regardless of age or family size, simplifying administration and supporting predictable budgeting.
The name change does not alter CHOICE Arrangements’ structure, regulatory requirements, eligibility, or contribution rules. CMS outlines four steps for employers considering this coverage:
- Learn how CHOICE Arrangements work.
- Estimate costs and assess workforce fit.
- Consult a broker or third-party administrator to see how they offer support.
- Visit CMS’ website for account details, a cost and contribution calculator, and a list of vendors.
Employer Takeaway
No immediate action is needed. Existing ICHRA plan documents, payroll setups, and employee communications remain valid. Download the bulletin for more details.
