Specifically, a central component of the CHOICE Arrangement Act would codify a Trump administration rule that gives employers another way to offer health coverage to their employees. This rule created individual coverage health reimbursement arrangements. Using an ICHRA, an employer provides tax-free contributions that employees can use to buy an individual market health insurance plan that works best for them and their families.
While ICHRAs advance several Democratic health policy goals, Democratic members have expressed concern about their codification. A better understanding of ICHRAs would alleviate these concerns. But by growing the number of people with individual market coverage, ICHRAs should create a virtuous cycle: more enrollees will lead to more insurers participating in the market, additional plans and competition between them will create a more attractive market, the better market will lead more employers to offer ICHRAs, leading to more enrollees, and so on.