CMS has rebranded individual coverage health reimbursement arrangements to CHOICE Arrangements, or Custom Health Option and Individual Care Expense.
The new name for the alternative health insurance model was announced Sept. 3 by CMS Administrator Mehmet Oz, MD, at an event in Indiana.
ICHRAs let employers give workers a fixed, tax-free amount to buy their own individual health insurance on or off the exchange instead of offering a traditional group plan. The number of people covered by ICHRAs surpassed 500,000 at the start of 2026, according to the HRA Council.
The benefits model was first created under an executive order signed by President Trump in October 2017, with the model going live in 2020. Efforts to rebrand ICHRA into federal statute under the CHOICE name have been unsuccessful, including stripped provisions from H.R.1, signed into law in July 2025.
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