Custom Health Option and Individual Care Expense Arrangement Act

Floor Speech

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Mr. FERGUSON. Madam Chair, I rise in support of H.R. 3799, the CHOICE Arrangement Act.

According to research by NFIB, small businesses have ranked the cost of health insurance as their number one problem for 32 straight years. Republicans are spearheading innovative health care solutions to bring down health care costs for small businesses.

The CHOICE Arrangement Act does a great job giving employers more choices and flexibility in how they help provide health coverage for their employees, without Washington being involved.

In 2019, the Trump Administration finalized rules that allow employers to establish ``Individual Coverage Health Reimbursement Arrangements'' for their employees. These ICHRAs are employer-funded arrangements that employees can use to purchase their own health insurance plan in the individual market and pay for out-of-pocket medical expenses.

The CHOICE Arrangement Act appropriately codifies these regulations, ensuring that this option will remain available.

While employers of all sizes may find this approach of interest, it is particularly important as a means for small employers to offer health coverage for employees and their families without having to manage a complex health insurance plan and with more predictable costs.

The different health insurance choices available, such as CHOICE Arrangements, Qualified Small Employer Health Reimbursement Arrangements, or the Small Business Health Care Tax Credit, are unknown to 70 percent of small businesses. This measure would ensure that those businesses be notified about these options' availability and their tax advantages so that they can decide how best to serve their employees' health care preferences.

These arrangements also help facilitate coverage portability, because employees can continue their individual health Insurance plan if they change jobs.

The current regulations also allow the flexibility for employers to offer to employees both an ICHRA and excepted benefit coverage, such as dental or vision coverage. I am pleased this bill will preserve the same option to have both CHOICE Arrangements and these other benefits.

The CHOICE Arrangement Act includes other provisions similarly designed to assist small employers and their employees with respect to health coverage options. I urge support for this important measure to provide options for American workers and families.

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