Oscar applauds the introduction of Federal ICHRA Legislative Package

Oscar applauds the introduction of two bipartisan bills that would make Individual Coverage Health Reimbursement Arrangements (ICHRA)—also known as CHOICE arrangements—more accessible and easier to adopt.

The CHOICE Act, introduced by Senator Sheehy and Representative Hern, would write ICHRA into law, giving employers greater certainty as they look to offer health benefits. Meanwhile, the Small Business Health Options Awareness Act, introduced by Representative Van Duyne, would establish a new Small Business Administration–led initiative to educate small businesses about how ICHRA can help them provide affordable coverage.

At Oscar, we believe everyone deserves access to health insurance that’s simple, affordable, and built around their needs, and that employers shouldn’t have to break the bank to provide it. ICHRA helps make that possible by allowing employers to set aside tax-free funds for employees to buy high-quality, affordable individual plans on the open market, where more than 24 million Americans already choose from thousands of options from dozens of insurers competing on price and quality.

Unfortunately, this isn’t how most of the system works today. For millions of small businesses, rising healthcare costs have made it harder than ever to offer benefits. That’s left hardworking Americans—the retail worker in Ohio, the tradesperson in Pennsylvania, the childcare worker in Georgia—without coverage because their employers can’t afford it. And even when benefits are offered, employees are often limited to a few options that don’t fit their needs.

ICHRA is already changing that. Eighty-four percent of businesses that have adopted ICHRA are offering health insurance for the first time. These arrangements can reduce costs for employers by 20–30% and save employees $500–$1,000 annually.

These bills represent real progress toward a healthcare system that works better for everyone, one that offers small businesses more flexibility, and employees more choice and affordability.

“ICHRA is the next step of innovation in American healthcare. Today, employer health benefit costs are spiraling out of control – making it difficult for employers to offer affordable options," said Mark Bertolini, CEO of Oscar Health. "ICHRA is a win for employers, who can fund great health benefits at lower costs without the administrative hassle, and it’s a win for employees who will have access to more plan choices that fit their needs.”

Want to learn more? Click here to see if ICHRA could be right for your business.