CHOICE in Action: Texas Employers Take Advantage of New Approach to Health Benefits
Federal leaders spotlight legacy of healthcare innovation in Texas amid wave of momentum for CHOICE Arrangement
The Centers for Medicare & Medicaid Services (CMS), the Small Business Administration (SBA), and Take Command, the first provider of Individual Coverage Health Reimbursement Arrangements (ICHRAs) in the country, placed Texas businesses center stage in the national conversation about healthcare affordability at CHOICE in Action: Texas.
Dr. Mehmet Oz, Administrator for CMS, along with Kelly Loeffler, Administrator for SBA, heard directly from Texas employers and workers about how the new approach to employer-sponsored healthcare is affecting businesses across the state.
Established during President Trump’s first Administration, Individual Coverage Health Reimbursement Arrangements (ICHRAs) expanded the options available to employers by enabling them to make tax-favored contributions toward qualifying individual health insurance or Medicare coverage instead of offering a traditional group health plan.
Formerly known as ICHRA, CHOICE Arrangement allows employers to provide employees with a tax-advantaged contribution toward individual health coverage rather than selecting a traditional group health plan. Employees can use the contribution toward qualifying individual coverage based on their own healthcare needs and preferences.
“For too long, employers and workers have been stuck with a one-size-fits-all approach to health benefits,” said CMS Administrator Dr. Mehmet Oz. “CHOICE changes that by giving businesses greater flexibility and giving employees more control over the coverage that works for them. CMS is focused on expanding options that promote competition, affordability, and choice—and the experiences shared by Texas businesses today demonstrate why this model is gaining momentum.”
“Texas employers are under pressure from rising healthcare costs,” said Take Command CEO Jack Hooper. “Businesses facing double-digit renewals found a powerful alternative to traditional group plans in CHOICE. The new model gives employers greater predictability while giving employees more choice. Today's conversation showed what CHOICE looks like when it's put into practice by real Texas businesses.”
To learn more, visit: takecommandhealth.com and www.cms.gov/choicearrangements.
###
Get CMS news at cms.gov/newsroom, sign up for CMS news via email and follow CMS on X @CMSgov