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:
No immediate action is needed. Existing ICHRA plan documents, payroll setups, and employee communications remain valid. Download the bulletin for more details.