The Centers for Medicare and Medicaid Services (CMS) recently introduced a new name for individual coverage health reimbursement arrangements (ICHRAs), now referred to as CHOICE Arrangements. CHOICE Arrangement stands for Custom Health Option and Individual Care Expense Arrangement.

As part of the announcement, CMS published a new CHOICE Arrangement fact sheet outlining how the arrangements work. Officials reiterated that employers may contribute the same fixed dollar amount toward coverage for every employee enrolled in the arrangement, regardless of age or family size, a design feature intended to simplify administration and support predictable budgeting.

The rebranding also does not change the structure or regulatory requirements of the arrangements. Employers offering or considering this type of coverage will continue to follow the same eligibility and contribution rules that applied under the ICHRA.

Employer Takeaway

Employers do not need to take any immediate action as a result of the name change. Existing ICHRA plan documents, payroll setups and employee communications remain valid.