New bills would make ICHRA more accessible, giving small businesses and workers greater choice and affordability
By Stephanie Akpa, Director of Public Policy, Senior Counsel at Oscar Health
Oscar applauds the introduction of two bipartisan bills that would make Individual Coverage Health Reimbursement Arrangements (ICHRA)—also known as CHOICE arrangements—more accessible and easier to adopt.
The CHOICE Act, introduced by Senator Sheehy and Representative Hern, would write ICHRA into law, giving employers greater certainty as they look to offer health benefits. Meanwhile, the Small Business Health Options Awareness Act (opens in new tab), introduced by Representative Van Duyne, would establish a new Small Business Administration–led initiative to educate small businesses about how ICHRA can help them provide affordable coverage.
At Oscar, we believe everyone deserves access to health insurance that’s simple, affordable, and built around their needs, and that employers shouldn’t have to break the bank to provide it. ICHRA helps make that possible by allowing employers to set aside tax-free funds for employees to buy high-quality, affordable individual plans on the open market, where more than 24 million Americans already choose from thousands of options from dozens of insurers competing on price and quality.
“ICHRA is a win for employers, who can fund great health benefits at lower costs without the administrative hassle, and it’s a win for employees who will have access to more plan choices that fit their needs.”
Unfortunately, this isn’t how most of the system works today. For millions of small businesses, rising healthcare costs have made it harder than ever to offer benefits. That’s left hardworking Americans—the retail worker in Ohio, the tradesperson in Pennsylvania, the childcare worker in Georgia—without coverage because their employers can’t afford it. And even when benefits are offered, employees are often limited to a few options that don’t fit their needs.