ICHRA Name Changed To CHOICE Arrangement

ANNOUNCEMENT: Centers for Medicare & Medicaid Services (CMS) and the U.S. Small Business Administration have announced that the Individual Coverage Health Reimbursement Arrangement (ICHRA) will now go by the name “CHOICE Arrangement.” This new acronym stands for Custom Health Option and Individual Care Expense.

Even though the name has changed, nothing else about this benefit is new or different, and the rules still work the same. Through ICHRA/CHOICE plans, employers can choose to reimburse their employees for individual health insurance premiums and qualified medical expenses — and the reimbursement is completely tax-free.

Learn more about CHOICE Arrangements

As the industry slowly makes this transition, you can expect to hear both names for a while. You may also continue to see the term “ICHRA” on documents and tax reporting. But if you run into something confusing or have any questions related to this change, please don’t hesitate to reach out to us. We’re happy to help!