Vote Smart's Synopsis:

Vote to pass a bill that establishes statutory authority for regulations that allow employers to offer individual coverage health reimbursement arrangements (ICHRAs).

Highlights:

• Defines this bill as the Custom Health Options and Individual Care Expense (CHOICE) Arrangement Act (Sec. 1).

• Establishes statutory authority for regulations that allow employers to offer individual coverage health reimbursement arrangements (ICHRAs) to employees (Sec. 2).

• Requires that under ICHRAs, employers agree to reimburse employees for incurred medical expenses up to a limit for a specified period, and employees obtain their own individual coverage that meets certain requirements of the Patient Protection and Affordable Care Act such as preventative services and no annual or lifetime limit (Sec. 2).

• Specifies that payments or reimbursements under an ICHRA be tax exempt and may only be made for medical care provided when the employee was covered by a plan that meets requirements, and requires employee’s also pair ICHRAs with Medicare coverage (Sec. 2).

• Establishes statutory authority under this bill for the following regulations issued in 2019 by the Department of the Treasury, Department of Labor, and the Department of Health and Human Services, that allow employers to offer employees ICHRAs if the certain conditions are met, including, but not limited to, the following (Sec. 2):

• The employer offers ICHRAs to all employees in the same class (i.e. full-time employees) without the choice of an employer-sponosored group health plan; and

• The emloyer offers the ICHRa to all employees within the class on the same terms (i.e. amount of funds available and the terms and conditions of the benefits).

Full Bill Text

Full Bill Text