The medical benefit
A formal defined-contribution arrangement that reimburses qualifying individual medical coverage.
- Employer allowance
- Individual medical plans
- Permitted employee classes
- Affordability and notices
- Substantiation and reimbursement
CHOICE ARRANGEMENT SETUP AND ENROLLMENT
What is a CHOICE Arrangement?
A CHOICE Arrangement is the newer public-facing term for an Individual Coverage Health Reimbursement Arrangement, or ICHRA. The governing legal and reporting language may still use ICHRA. The employer sets a defined contribution; eligible employees choose qualifying individual medical coverage available where they live.
By Brad O’Neill, co-creator of Choice Benefits · Updated October 2, 2026
What are CHOICE Arrangements?
A CHOICE Arrangement is an employer-funded health benefit that reimburses eligible employees for qualifying individual health insurance and, when included in the plan, eligible medical expenses. CHOICE Arrangements are the public-facing name used by federal agencies for Individual Coverage Health Reimbursement Arrangements (ICHRA).
Read the current HealthCare.gov definition. ChoiceBenefits.ai connects the funding decision with employer setup, employee shopping and enrollment. Compare the employer’s current plan and renewal before choosing a funding path.
Compare CHOICE Arrangement funding options · How to set up a CHOICE Arrangement · Independent CHOICE Arrangements advice from The ICHRA Shop
THE DISTINCTION THAT MATTERS
A CHOICE Arrangement is one funding option.
Choice Benefits is the complete strategy.
Employers and brokers can use either guide independently—or use both when comparing a CHOICE Arrangement with Group and a broader benefits package.
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The complete benefits strategy
The platform and advisory process that compares funding choices and carries the selected design through launch.
- Group + CHOICE comparison
- Ancillary and voluntary benefits
- Predictive Risk Intelligence
- Workers’ compensation and payroll
- Employee shopping and enrollment
How it works
Employer budget. Employee choice. One guided launch.
1
Establish the budget
Model employee, spouse and dependent amounts; permitted employee classes; geography; affordability and total employer cost.
Build the contribution strategy →2
Adopt and fund the plan
Complete the employer resolution, plan document, Summary Plan Description, required notices and secure premium-funding authorization.
See the document hub →3
Shop and enroll
Employees compare qualifying medical coverage first, then consider dental, vision, HSA and other benefits with enrollment support.
Explore the marketplace →Contribution strategy
Design employee and family offers deliberately.
Start with the employee’s self-only ICHRA affordability calculation, then decide which household members will be offered the arrangement. If the employee’s ICHRA is affordable, a spouse or child who is also offered it generally cannot receive a Marketplace premium tax credit—even if the family member waives the offer.
- Employee-only monthly allowance
- Spouse and dependent offer decisions
- Age, class and geographic variations where permitted
- Marketplace subsidy effects for offered family members
- ALE dependent-offer review with counsel or the administrator
What employers can evaluate
Current versus proposed cost
Compare the existing benefit budget with modeled individual-market costs.
Compare the existing benefit budget with modeled individual-market costs.
Local plan availability
Review carrier, network and pricing differences across employee locations.
Review carrier, network and pricing differences across employee locations.
Employee impact
Estimate employee cost after the employer allowance—not premium alone.
Estimate employee cost after the employer allowance—not premium alone.
Why Choice Benefits
From decision to enrollment—not another disconnected calculator.
Launch your benefits
Enter the employer, workforce, geography and allowance design in one guided workflow.
Organize the launch
Connect plan design, documents, service-fee payment, premium funding and employee notices.
Give employees a marketplace
Shop medical first and add the benefits that fit, with live enrollment assistance.
Frequently asked questions
CHOICE Arrangement questions employers ask first.
Is a CHOICE Arrangement the same as an ICHRA?
CHOICE Arrangement is the newer public-facing term used in federal employer materials. The governing rules, plan documents, disclosures and reporting may still use Individual Coverage HRA or ICHRA.
How does a CHOICE Arrangement work?
The employer defines eligible employee classes and monthly allowances. Employees select qualifying individual coverage available where they live and follow the administrator’s substantiation, payment and reimbursement process.
Can an employer contribute for spouses and dependents?
Yes. An employer may design allowances for employees and eligible family members, subject to the plan’s affordability, class and nondiscrimination requirements.
Can setup really begin in about 10 minutes?
Yes. The initial company, workforce, contribution and geography information can be entered in about 10 minutes. Final review, documents, notices, funding and administration still must be completed before launch.
Where do employees shop?
Employees use the Choice Benefits marketplace to compare available medical coverage first and then explore dental, vision, HSA and other available benefits.
Choice Benefits provides planning, implementation and enrollment support. Final legal, tax, affordability and administration requirements should be reviewed for each employer.
CHOICE Arrangement resource center