Offering health benefits doesn’t have to mean choosing between flexibility and a complete benefits package.
A CHOICE Arrangement, formerly known as an individual coverage health reimbursement arrangement (ICHRA), is a flexible health benefit solution that lets employers offer personalized health coverage while still providing other benefits employees value, like dental, vision, and life insurance.
In this article, we’ll explain how employers can incorporate a CHOICE Arrangement into a broader benefits strategy.
In this blog post, you’ll learn:
A CHOICE Arrangement (formerly ICHRA) is an employer-funded health benefit. It lets employers make tax-advantaged contributions that employees can use toward qualified individual health insurance premiums and, in some cases, other eligible out-of-pocket medical expenses.
Instead of choosing one group health plan for everyone, employers set an allowance and employees choose the qualified individual health plans that fit their needs.
Employees can have different coverage based on factors such as where they live, their preferred providers, their prescription needs, and their household situation.
But major medical coverage is only one part of a benefits package. Employers may still want to offer dental, vision, and other forms of ancillary coverage through traditional group plans.
Yes. Employers can offer a CHOICE Arrangement (formerly ICHRA) alongside other employee benefit programs. The key is understanding that a CHOICE Arrangement addresses individual health coverage. You can continue to offer other benefits separately.
Consider an employer with 100 employees that currently offers a traditional group health insurance plan, along with group dental and vision coverage. At renewal, the employer is facing higher medical costs and wants to explore a different approach to health coverage.
Instead of replacing its entire benefits package, the employer could restructure its benefits like this:
By giving employees more flexibility in plan selection while maintaining familiar dental and vision benefits, employers can create a more personalized benefits experience that can support employee satisfaction.
Yes. Employers can use different health benefit strategies for different employee classes, as long as the arrangement meets applicable eligibility and nondiscrimination requirements.
For example, an employer could offer a CHOICE Arrangement to its full-time employees while offering traditional group health coverage to a separate eligible employee class. This approach can give employers more flexibility to design benefits around the needs of different groups within their workforce.
Dental and vision are common examples, but employers can pair a CHOICE Arrangement with other benefits.
You can also offer:
Employers may choose a CHOICE Arrangement (formerly ICHRA) as part of their benefits model for several reasons.
With a CHOICE Arrangement, employees can shop for individual health insurance that works for their circumstances instead of being limited to a single group health plan. Employees can choose coverage based on their individual health coverage priorities, such as their preferred doctors, prescription needs, family situation, and budget.
That choice can be significant. According to Remodel Health’s 2026 National ICHRA Report, employees on our platform selected an average of 14 unique health plans per organization, compared with the single plan design typically offered through a traditional group health plan.
Group health insurance premiums increase from year to year, making it difficult for employers to predict their healthcare costs. KFF found that average employer-sponsored family premiums rose 6% to $26,993 in 2025, with workers contributing an average of $6,850. With a CHOICE Arrangement, employers aren't directly tied to annual group premium increases, giving them more control over their benefits budget. Instead, employers set their own contribution amount, creating opportunities for cost savings while still providing employees with meaningful health coverage.
Switching to a CHOICE Arrangement doesn’t necessarily mean changing every other benefit. An employer may decide that traditional group dental and vision plans still make sense for its workforce. Keeping those benefits in place can create continuity while the employer takes a different approach to medical coverage.
Benefits don’t have to be one-size-fits-all. An employer can evaluate each part of its benefits package independently and choose the approach that best fits its workforce and budget.
Combining a CHOICE Arrangement (formerly ICHRA) with other benefits gives employers flexibility, but plan design still matters.
Employers should consider:
Remodel Health makes the transition from group coverage to a CHOICE Arrangement easier. We guide you through benefit design, setup, employee education, and enrollment, and we handle automated premium payments and regulatory requirements.
A CHOICE Arrangement, formerly known as an individual coverage HRA (ICHRA), is a modern alternative to traditional group health insurance. By offering it alongside other forms of ancillary benefits, employers can build a benefits package that combines individual choice with familiar group coverage. The result is a more flexible approach to health benefits that works for both employers and employees.
Ready to make the switch? Remodel Health can help. Schedule a call today!
This blog post was originally published on November 19, 2024. It was last updated on September 15, 2026.