Choice Arrangement

This bill would write into federal tax law a type of employer health benefit called a custom health option and individual care expense (CHOICE) arrangement, which uses only employer money to reimburse workers for medical care while they have individual health insurance or Medicare. Employers would have to offer the arrangement on the same terms to all workers in a given class, check that workers have qualifying coverage, and give written notice at least 60 days before the plan year. The total benefit amount would appear on workers' W-2 forms, and workers in these arrangements could pay for exchange insurance through a pre-tax cafeteria plan. Employers that are not large employers would get a tax credit of $100 per enrolled worker per month in the first year and half that in the second year. The changes would apply starting with years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Kevin Hern Republican sponsor
• 11 cosponsors