CHOICE Act

Increased Flexibility in Health Coverage: Employees can receive employer-funded reimbursements for medical care while maintaining individual health insurance or Medicare coverage, as described in Section 2(a)(2)(B)(ii).

Employer Incentives to Provide Benefits: Small employers (those who are not applicable large employers) may receive a tax credit of $100 per month for the first year and half that amount for the second year for each enrolled employee, which may encourage them to offer these benefits under Section 4(a).

Access to Exchange Insurance: Employees in a CHOICE arrangement are granted an exception that allows them to purchase exchange insurance under a cafeteria plan, according to Section 3(a).

Protections Against Discrimination: The bill requires that these arrangements be offered to all employees within a specified class on the same terms, as detailed in Section 2(a)(2)(C)(i).

Limited Availability Based on Employee Class: Employers can restrict these arrangements to specific "specified classes" of employees, such as full-time, part-time, or salaried employees, which means not all employees at a company may be eligible under Section 2(a)(2)(C)(ii).

Coverage Requirements: To receive reimbursements, individuals must maintain specific types of coverage, such as individual health insurance (excluding excepted benefits) or Medicare, as stated in Section 2(a)(2)(B)(ii).

Reporting Requirements: The total amount of permitted benefits received under a CHOICE arrangement will be included on the employee's W-2, as required by Section 2(b)(1).