The HRA Council (The Council) today expressed its strong support for congressional legislation to codify the Individual Coverage Health Reimbursement Arrangement (ICHRA) as a permanent, statutory option for employer-sponsored health benefits. The Council urges bipartisan backing for H.R. 5463 introduced by U.S. Reps. Kevin Hern (R-OK), Claudia Tenney (R-NY), and Beth Van Duyne (R-TX) in the House, and S. 2875 introduced by U.S. Sen. Tim Sheehy (R – MT) in the Senate. The Council extends its sincere thanks to the sponsors and cosponsors for championing this critical reform for employer-sponsored health benefits. The Council also looks forward to working with Congress and agency regulators on additional refinements that will further encourage ICHRA adoption among employers of all sizes.

Why Codification Matters

Since its introduction through federal regulation, ICHRA has offered employers of all sizes a flexible, tax-advantaged tool to reimburse employees for guaranteed issue individual market health coverage. However, because ICHRA is rooted in regulation rather than statute, its future remains vulnerable to regulatory shifts. By enacting ICHRA as CHOICE, Congress can bolster uptake for high quality, full coverage health insurance. Codification gives employers and employees greater stability, predictability, and confidence that ICHRA will endure.

Codification also opens the door to necessary refinements—such as enabling pre-tax payroll deductions for on-exchange premiums, streamlining administrative rules, and scaling small business incentives—that can unlock broader adoption and strengthen the individual insurance market. (See Growth Trends for ICHRA & QSEHRA report)

“The HRA Council urges Members of both parties to come together in support of these bills. ICHRA codification is not a partisan issue — it’s good governance, effective policy, and a tool for expanding coverage and choice,” said Robin Paoli, Executive Director of the HRA Council. “These companion bills offer Congress a clear path toward alignment between the chambers and the opportunity to enact lasting bipartisan health insurance reform that empowers American workers and their families.”

Bicameral Bill Provisions

• The bills would amend the Internal Revenue Code to treat employer-provided health reimbursement arrangements integrated with ACA-compatible individual coverage in a consistent and stable statutory framework. They rename ICHRA as CHOICE, and include on-exchange tax parity for employees while adding an option to empower the change management process for larger employers.
• They also provide federal tax credits for smaller employers who offer CHOICE plans. According to the Council’s data report, 87% of small businesses adopting ICHRA or QSEHRA are offering insurance to employees for the first time.
• Additionally, the Council supports H.R. 5498, introduced by Beth Van Duyne (R-TX-24), Claudia Tenney (R-NY-24), and Kevin Hern (R-OK-01), the Small Business Health Options Awareness Act of 2025 to require the SBA to provide more outreach and information about the availability of Individual Coverage Health Reimbursement Arrangements (ICHRAs).
• The Council believes these provisions are a positive step forward and will be working with members of Congress on both sides of the aisle, and in both chambers, to build more cosponsorship of this common sense legislation.

"Codification of Individual Coverage Health Reimbursement Arrangements (ICHRA) as CHOICE protects the growing numbers of employees and their families who are insured by full coverage health insurance under ICHRA and QSEHRA, and enacts ICHRA as statutory law on par with QSEHRA which was codified in the bipartisan 21st Century Cures Act,” said HRA Council Board Chair Eugene Sayan. “The HRA Council supports the CHOICE Arrangement Act and looks forward to working with Members of the House and Senate for bipartisan codification."

About the HRA Council

The HRA Council is a non-partisan trade association of health insurance leaders, brokers, administrators, insurers, fintech, bentech, support organizations, and employers committed to improving and expanding health coverage options through health reimbursement arrangements. (hracouncil.org) We engage policymakers, regulators, and market participants to reduce barriers and promote best practices for sustainable, consumer-centric benefits solutions.

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ICHRA codification is not a partisan issue — it’s good governance, effective policy, and a tool for expanding coverage and choice.