1
Establish the budget
Model employee, spouse and dependent amounts; permitted employee classes; geography; affordability and total employer cost.
Build the contribution strategy →Complete employer guide
What is a CHOICE Arrangement?
A CHOICE Arrangement—formerly called an Individual Coverage Health Reimbursement Arrangement or ICHRA—lets an employer establish a defined health-benefit budget while employees choose qualifying individual medical coverage available where they live.
How it works
Employer budget. Employee choice. One guided launch.
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
Budget separately for employees, spouses and dependents.
A strong design goes beyond one flat employee amount. Choice Benefits helps employers test employee-only affordability and establish intentional spouse and dependent contributions—including a nominal dependent amount when appropriate for an applicable large employer.
- Employee-only monthly allowance
- Spouse allowance
- Per-dependent allowance
- Age, class and geographic variations where permitted
- Family-affordability and subsidy considerations
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.
Start in about 10 minutes
Enter the initial employer, workforce, geography and allowance design online.
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?
Yes. CHOICE Arrangement is the current name used for the employer health benefit previously known as an Individual Coverage Health Reimbursement Arrangement, 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