CHOICE Act

This bill would write into federal tax law a type of employer health plan called a CHOICE arrangement, in which an employer pays or reimburses workers for medical costs, up to a set dollar limit, while they are enrolled in individual health insurance or Medicare. Employers would have to offer the arrangement on the same terms to everyone in a chosen class of workers, check that workers have qualifying coverage, and give written notice at least 60 days before the plan year. Employees in these arrangements could pay for marketplace (Exchange) insurance through a pre-tax cafeteria plan, and the amount of benefits would be reported on W-2 forms. Employers that are not large employers would get a tax credit of $100 per enrolled employee per month in the first year and half that amount in the second year. The changes would apply starting in 2026.

Full text and official record on Congress.gov

Sponsors

• Tim Sheehy Republican sponsor
• 4 cosponsors