CHOICE Act

Creates a new employer-paid reimbursement model (called a CHOICE arrangement) that can be used with individual market coverage or Medicare and treated as meeting key federal insurance requirements. It changes tax rules so employer contributions are treated favorably, requires employer notices and reporting, directs agencies to update regulations, and creates a temporary per-employee tax credit to encourage employers to adopt these arrangements. All changes take effect for plan years and taxable years beginning after December 31, 2025.