On September 3, the Small Business Administration (SBA), the Department of Health and Human Services (HHS), and the Centers for Medicare & Medicaid Services (CMS) announced a new name for Individual Coverage Health Reimbursement Arrangements (ICHRAs): CHOICE Arrangements.
The rebrand simplifies understanding of the program, provides more resources for small business owners and their employees, and presents valuable opportunities for individual health insurance agents to connect with a new audience!
What Are CHOICE Arrangements?
The first Trump administration prioritized the creation of health reimbursement arrangements (HRAs) to encourage “healthcare choice and competition.” After several years, the current Trump Administration has updated the name of one type of HRA, ICHRAs, to increase clarity around them.
The rebrand of ICHRAs to CHOICE Arrangements did not change anything about this type of health coverage.
The rebrand of ICHRAs to CHOICE Arrangements did not change anything about this type of health coverage.
Things to note about CHOICE Arrangements:
- Employers of any size can participate
- Reimbursements for medical services are tax free
- CHOICE coverage is the same as the standard ACA enrollment
- Employers satisfy the employer mandate of the ACA with a CHOICE Arrangement
- An SEP is triggered after creating a CHOICE Arrangement
For more information, read our blog post on CHOICE Arrangements.
This flexible health insurance option can be a great way for small business owners and their employees to access to coverage that works for them.
New Federal Resources Available for Employers
With the transition to CHOICE Arrangements, the Department of Labor has released an Individual Coverage HRA Model Notice. This document can be helpful for small business owners thinking about debuting an HRA.
This model notice can serve as an example for owners, HR representatives, and others overseeing employee benefits.
As an agent, you can provide this model notice to employers you’re working with as they’re establishing a CHOICE Arrangement.
See also SBA.gov and CMS.gov for additional resources for small business owners and others.
How Insurance Agents Can Assist Small Business Owners and Their Employees
While some employers may opt to administer their CHOICE Arrangement on their own, you can offer support and services.
You can assist employers with the CHOICE Arrangement administration and payment process, including:
- Selecting a correct enrollment platform (such as Nexben)
- Onboarding (or referring) employees
- Enrollment verification
- Reimbursement processing
- Documentation collection and storage
- Compliance, including tax reporting
- Employee communications
- Reporting and tracking tools
- Your assistance could be valuable for employers looking for help, and you could generate a new revenue stream from referrals and commissions!
How to Get Started with CHOICE Arrangements
To get started working with CHOICE Arrangements, you’ll need a partner that can offer support. At Ritter, we’ve partnered with Nexben, an HRA enrollment platform.
Please note that we are not training, supporting, or facilitating CHOICE enrollments, but we can provide a connection for agents looking to generate a new opportunity.
Register to become a Ritter agent to take advantage of CHOICE benefits with Nexben!
If you’re already a Ritter agent, contact a member of our Sales team to express your interest and hear more about the program!
Nexben offers both a referral option and an option to retain agent of record (AOR) status on policies. Their technology consolidates premium billing and payment data to provide employers with one itemized statement.
If you’re interested in partnering with Nexben and remaining the AOR, you must use an alternative enrollment platform such as IntegrityCONNECT. For detailed questions or to get started with a CHOICE Arrangement, contact Nexben at [email protected].
Working with CHOICE Arrangements can be a great way for insurance agents to assist small business owners and their employees with affordable healthcare options. We encourage you to explore offering this coverage!
Not affiliated with or endorsed by Medicare or any government agency.
Share Post