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CHOICE Arrangements for brokers
Bring that big benefits energy to your clients
CHOICE Arrangements (previously known as ICHRA) is the move that takes care of business. It gives your clients the cost certainty they need while their employees get the chance to pick an Oscar health plan that actually fits their life. And you? You become the broker they can’t afford to lose.
Big moves lead to a bigger book
CHOICE Arrangements is the benefits strategy that works for your clients — and your book.
92%
of brokers who adopted CHOICE Arrangements saw a commission increase1
91%
of employers say switching to CHOICE Arrangements was the right decision2
9 out of 10
groups who adopted CHOICE Arrangements renewed YoY2
82%
of brokers deliver 10-30% savings1
The right enrollment platform makes a difference
The Oscar difference
Enjoy automatic IRS, ERISA, and HRA guardrails without lifting a finger.
Streamline your workflows, deliver clear reporting, and customize flexible fee structures for you and your clients.
Offer smart tools that help employees easily choose the right plans for their real life.
Speed up processing with fast, reliable reimbursements and automated funding.
Sync instantly with existing HR or payroll systems and expand your business effortlessly.
How it works
Make the change
Sticky platform + multiproduct selection relationship = longer retention. Grow each employee policy over time.
- Step 1
Select an ICHRA administrator
The right platform does the heavy lifting so you and your clients don’t have to.
- Step 2
Define contributions
Help clients decide on budgets for part-timers, contractors, or execs. Commissions stack per employee across product lines, not just a group policy.
- Step 3
Design the plan
Clients apply dollars to premiums or a full range of care. Build tailored designs to boost value and close rates. Sell standalone or supplemental for year-round income.
- Step 4
Launch to employees
Quick, smooth, and easy onboarding. Stop bidding out group plans annually. Employees re-enroll in the ACA while you keep the client through carrier and life changes.
- Step 5
Automatic reimbursements
Platforms handle premium reimbursement based on your client’s contribution model. No admin lifts for you.
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Frequently asked questions
Get the facts, fast
Get quick answers to the questions people ask most.
CHOICE Arrangements (previously known as ICHRA) stands for Custom Health Option and Individual Care Expense. It’s a type of Health Reimbursement Arrangement (HRA) created in 2020. It’s great because it allows businesses of any size to provide tax-free reimbursements to employees for health insurance premiums and qualified medical expenses.
In most cases, an employer works with a third party (broker and/or CHOICE Arrangements administration platform) to design and implement their company’s CHOICE Arrangements. This process typically requires the employer to determine their budget, decide which employees can and cannot participate in CHOICE Arrangements, and establish when to launch the new health benefits solution to employees.
Once CHOICE Arrangements is introduced to the company, employees get to shop for an individual insurance plan on the open market and buy a plan that suits their unique needs. Then, employees seek tax-free reimbursements from their employer each month.
Employers of any size can offer CHOICE Arrangements so long as they have at least one employee who isn’t a self-employed owner or the spouse of a self-employed owner. If designed correctly, an ICHRA satisfies the Affordable Care Act (ACA) employer mandate for Applicable Large Employers (ALEs).
To determine if CHOICE Arrangements is right for your business, take a look at the official IRS CHOICE Arrangements regulations or talk to a tax professional.
Yes. If designed correctly, CHOICE Arrangements satisfies the Affordable Care Act (ACA) employer mandate for Applicable Large Employers (ALEs). To determine if CHOICE Arrangements is right for your business, take a look at the official IRS CHOICE Arrangements regulations or talk to a tax professional.
Hmm, yes and no. Here’s why: Employers can offer CHOICE Arrangements to one segment of employees while offering a traditional group plan to a different segment of employees.
However, employers are not allowed to offer both CHOICE Arrangements and a traditional group plan to the same segment of employees. To determine allowable class distinctions, just refer to official IRS CHOICE Arrangements regulations or talk to a tax professional.
Footnotes
Oscar Medical coverage is underwritten by Oscar Insurance Company and its affiliates. Administrative Services for all plans provided by Oscar Management Corporation. All insurance policies and group benefit plans contain exclusions and limitations. For availability, costs, and complete details of coverage, contact Oscar at (855) 672-2788.