Give employees an HSA that works with their CHOICE Arrangement
Health benefits should empower people, not overwhelm them. Remodel Health helps your employees choose the right individual health plan through a CHOICE Arrangement (formerly known as ICHRA). We’ve partnered with Lively to give them a health savings account (HSA) to save, spend, and invest for healthcare expenses.
Meet the Remodel Health HSA, powered by Lively
The Remodel Health HSA, powered by Lively, delivers a connected experience that combines individualized healthcare funding with one of the industry’s highest-rated HSA platforms.
Pairing an HSA with a high deductible health plan (HDHP) isn’t enough. Employees still have to pick the right plan, understand the account, and remember to use it. Your HR team shouldn’t have to coach each person through that. Remodel Health handles the health insurance funding strategy and employee plan selections through a CHOICE Arrangement, and Lively provides the HSA platform.
Empower employee choice
Employees choose the qualified individual health plan that fits their health and budget, with help available from a Remodel Health licensed Benefit Advisor. When your employees pick an HSA-eligible plan, they can open a Remodel Health HSA and decide how to use it: spend it on care now, save it, or invest it.
Make employee healthcare dollars go further
HSA contributions go in pre-tax, grow without tax, and come out tax-free for qualified medical expenses. Unused funds roll over every year and stay with the employee if they change jobs or health plans.
Remove administrative complexity through integration
HSA selection is integrated into Remodel Health's shopping experience. Once an employee chooses to add an HSA, we seamlessly connect with Lively to facilitate account opening.
Remodel Health’s connected platform brings individual plan selection, funding, and HSA management into one experience. For employers and benefits consultants, that means a modern alternative to traditional group insurance, paired with an HSA platform employees want to use.
Lively earned recognition from Investor's Business Daily as one of the Best HSA Providers for 2026 and from Morningstar as one of the Top HSA Providers of 2025. Employees get a modern app, clear account tracking, and a support team that answers HSA questions so your HR team doesn't have to.
More of your employees can now use an HSA thanks to recent legislative changes
Federal law now treats Bronze and catastrophic individual plans as HSA-eligible. This includes off-exchange plans that match a plan sold on the exchanges. Employees who use their CHOICE Arrangement (formerly ICHRA) contribution to enroll in one of these plans can now contribute to an HSA, as long as the arrangement design itself keeps them eligible.
That’s where plan design matters. Remodel Health builds your CHOICE Arrangement to protect HSA eligibility from day one.
How it works
We design an HSA-compatible health reimbursement arrangement (HRA)
Your CHOICE Arrangement (formerly ICHRA) covers premiums only or reimburses other qualifying medical expenses only after employees meet their deductible. Either design keeps employees HSA-eligible. Contact Remodel Health to get started with offering a CHOICE Arrangement and HSA to your team.
Employees choose an HSA-eligible individual health insurance plan
Employees can shop for coverage through the Remodel Health platform. Our licensed Benefit Advisors are available to help those with complex medical situations compare plans and find an HSA-eligible option that fits their needs.
Employees open and fund their Remodel Health HSA
Lively sends each employee an enrollment email. Employees can contribute pre-tax through payroll with a Section 125 plan and pay for qualified medical expenses with their HSA debit card.
Who handles what
Remodel Health leads
- CHOICE Arrangement funding strategy and plan design
- Individual health plan selection and advisor support for employees
- Compliance guidance and employer strategy
- Year-round employee advocacy
Lively powers
- Consumer-grade HSA technology and mobile app
- AI-enabled HSA support and 360° account administration
- Fast reimbursements and debit card management
- Employee investment options for long-term savings1
What your employees get
Triple tax advantage
Contributions go in pre-tax, growth isn’t taxed, and withdrawals for qualified medical expenses are tax-free.
Money that stays theirs
Easy spending
Room to grow
2027 HSA limits
The amount employers and employees can contribute to an HSA combined.
Those age 55 or older can contribute extra to their HSA each year.
What is an HSA, and how does it work?
A health savings account (HSA) is a personal savings account that employers and employees can contribute to. Employees can use it to pay for eligible medical expenses on a pre-tax basis. An individual can open an HSA on their own, or an employer can offer one as a health benefit in conjunction with a qualifying high deductible health plan or CHOICE Arrangement (formerly ICHRA). The money in the HSA stays in the account until the employee uses it, and the balances roll over annually.
What are the benefits of an HSA?
- Triple tax advantages: Tax-deductible contributions reduce your employees’ total taxable income. Employees can use their funds tax-free for qualified medical expenses. They can also earn tax-free interest and investment gains.
- Investing funds: Employees can invest their HSA funds in stocks, bonds, and more for long-term gain.
- Stays with the employee: Unspent HSA funds roll over annually until used. This allows your employees to save for future medical expenses or for retirement.
What expenses can employees use an HSA for?
The IRS defines HSA-eligible medical expenses as those defined in Internal Revenue Code Section 213(d) plus menstrual care products2. Expenses can’t be covered by insurance or incurred before the employee establishes the HSA. Employees can’t use HSA funds on insurance premiums except for long-term care insurance, continuation coverage like COBRA, healthcare coverage while receiving unemployment compensation, or Medicare if the employee is 65 or older.
Examples of qualified medical expenses include bandages, glasses, prescription drugs, therapy, lab work, and more.
Who is eligible for an HSA?
To qualify to contribute to an HSA, an employee must have a high deductible health plan (HDHP). They can’t be enrolled in any other type of health coverage, including Medicare (however, you can have coverage for accidents, disability, dental or vision care, long-term care, or telehealth). They also can’t be claimed as a dependent on someone else’s tax return3.
An HDHP is any plan with an annual minimum deductible of $1,750 for self-only coverage or $3,500 for family coverage in 2027. Annual out-of-pocket maximums can’t exceed $8,700 for self-only coverage or $17,400 for family coverage4. All Bronze and catastrophic plans on the individual market, as well as their off-exchange versions, are also HSA-eligible.
Employees with a CHOICE Arrangement can still contribute to an HSA. They’ll need to enroll in a qualified individual health plan that meets the definition of an HDHP, or is an eligible Bronze or catastrophic plan. Employers need to offer a limited-purpose or post-deductible CHOICE Arrangement to employees who want to contribute to an HSA.
Learn more about how a CHOICE Arrangement works with an HSA
Frequently asked questions
Can employees have an HSA with a CHOICE Arrangement (formerly ICHRA)?
Yes. Employees can contribute to a health savings account (HSA) when they enroll in an HSA-eligible plan, and their CHOICE Arrangement is HSA-compatible. Starting in 2026, HSA-eligible plans include high deductible health plans (HDHPs) plus Bronze and catastrophic plans. When seeking to offer an HSA, Remodel Health designs your arrangement to pay or reimburse only premiums, or to reimburse other medical expenses only after the employee meets their deductible. Either design protects HSA eligibility.
Can leftover CHOICE Arrangement/ICHRA money go into an HSA?
No, employers and employees can’t move unused ICHRA contributions into an employee’s HSA. Unused contributions remain with the employer at the end of the plan year.
The content presented on this page is for informational purposes only and is not considered investment, legal, accounting, or financial planning advice.
1. Investment options for HSAs in the custody of Lively, Inc. are provided by Charles Schwab & Co., Inc., Lincoln National Life Insurance Company, the Lincoln Life & Annuities Company of New York, and Devenir, LLC; fees may apply. Investments are not federally insured, not guaranteed by a financial institution, not deposits & may lose value.
2. IRS Publication 502: Medical and Dental Expenses
3. IRS Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans