Legislation that would allow employees to use money from their employer to buy a healthcare plan that works best for them passed the U.S. House of Representatives on Wednesday.
Introduced by U.S. Rep. Kevin Hern (R-OK) , the Custom Health Option and Individual Care Expense (CHOICE) Arrangements Act, H.R. 3799, now heads to the U.S. Senate for consideration.
“The cost of healthcare, and the ever-growing burden of paperwork, has become a massive hardship for both employers and employees,” Hern said. “The CHOICE Arrangements Act puts employees in the driver’s seat when it comes to picking their health care plan, and lets employers financially support their decision. This is a common-sense solution.”
The National Federation of Independent Business (NFIB) came out in support of the bill that would permit Health Reimbursement Arrangements (HRAs), which allow employers to provide tax-advantaged funds to their employees to purchase qualified medical expenses (QMEs).
NFIB, an advocacy group for small businesses, sent a letter in support of the bill to members of Congress, citing it as an NFIB Key Vote for the 118th Congress.
“Small businesses have long advocated for affordability and flexibility regarding health insurance options,” Josselin Castillo, NFIB manager of federal government relations, said. “For decades, small business owners have ranked the rising cost of health insurance as their top concern. The CHOICE Arrangement Act will significantly help small businesses as it will increase coverage options and lower health insurance costs.”
According to a recent survey by NFIB, 98 percent of small business owners said their ability to provide health insurance benefits to their employees will become unsustainable in the next 5-10 years.