What is a CHOICE Arrangement?
CHOICE Arrangement stands for Custom Health Option and Individual Care Expense Arrangement (formerly known as ICHRA). A CHOICE Arrangement is a health benefit some employers offer to their employees that helps pay for some or all of an individual health insurance plan.
With a CHOICE Arrangement, the employee enrolls in an individual health plan that fits their needs. The employer sets a monthly allowance to pay or reimburse the employee’s plan premium.
What are the benefits of a CHOICE Arrangement?
You have the flexibility to choose a plan that fits your coverage needs and budget. Many plans offer broad provider networks that may cover the doctors and specialists you prefer to see. Plus, enjoy other benefits like:
- Tax-advantaged contributions – you don’t pay income tax on contributions from your employer
- A policy that stays with you – you can keep your plan even if you leave your job
How does a CHOICE Arrangement work?
Here’s a step-by-step overview of how a CHOICE Arrangement works.
Frequently asked questions
Your total cost depends on a few factors. These include:
- The monthly premium amount for the plan you choose
- The amount of your employer’s CHOICE Arrangement allowance
- Any out‑of‑pocket costs, like deductibles or copays
If your plan’s premium is less than your allowance, your employer may reimburse the full cost.1 If it’s more than your allowance, you typically pay the difference. Keeping this in mind can help you pick a plan that balances your coverage and budget needs.
You can shop and compare available ACA plans during open enrollment. This typically runs November 1 to January 15 in most states. Or if you’ve had a qualifying life event (like starting a new job or getting married), you may be eligible for a Special Enrollment Period.
Unlike a traditional group health plan, you’ll be able to take your plan with you. However, you’ll need to pay the full cost of the plan. The employer you’re leaving will no longer provide CHOICE Arrangement contributions or reimbursements.
If you're a member who has lost your CHOICE Arrangement, we may be able to help. Call the number on the back of your member ID card for assistance.
If your CHOICE Arrangement ends and you don’t want to keep your plan, you’ll need to cancel your coverage. It’s very important that you cancel — if you don’t, you’ll continue to be billed for the full cost of coverage. If you don’t pay, your coverage will be terminated for non-payment. We will attempt to collect any unpaid past due balance.
If you're a member who needs help canceling your coverage, call the number on the back of your member ID card for assistance.
Yes. If your employer offers a CHOICE Arrangement with reimbursement for dependents, then your family can be covered, too. You’ll need to enroll you and your family in a qualified ACA plan.
No. If your employer provides a CHOICE Arrangement contribution toward your health plan, you can’t also receive federal premium subsidies for the same coverage.
It depends on how your employer’s CHOICE Arrangement is set up. Your employer may pay the premium and deduct your contribution (if any) through a payroll deduction. Or you may have to pay the full premium directly to your insurance company and submit for reimbursement. Your employer will provide details on how the premium payment process works for you.
No. There aren't CHOICE Arrangement-specific plans, but to use your CHOICE Arrangement you must enroll in an off-exchange ACA individual plan. If your employer provides a CHOICE Arrangement contribution toward your health plan, you can’t also receive federal premium subsidies for the same coverage.
Ready to find a CHOICE Arrangement-eligible ACA individual plan?
Already a member? Sign in to your member account
