CHOICE Arrangements for Technology Companies

With a CHOICE Arrangement through Remodel Health, technology companies can control costs, simplify benefits administration, and give employees more choice in their health coverage.

When it comes to employee health benefits, many technology companies still rely on traditional group health insurance. But rising costs and limited flexibility can make it difficult to meet the needs of a diverse workforce.

The CHOICE Arrangement, formerly known as the individual coverage health reimbursement arrangement (ICHRA), gives technology companies a new way forward. Instead of offering one group health policy to everyone, employers provide a defined contribution that employees can use to choose the qualified individual health insurance plan that works best for them.

Understanding the CHOICE Arrangement for technology companies

The CHOICE Arrangement is an employer-sponsored health benefit. It offers tax benefits and cost savings to employers by allowing them to provide tax-free contributions toward employees' individual health insurance premiums.

Instead of purchasing or self-funding one group health plan, your technology company sets a defined monthly contribution for eligible employees. Employees then use that contribution to select a qualified individual health insurance plan that fits their doctors, prescriptions, location, budget, and healthcare needs.

Here's how it works:

The employer sets a monthly contribution. Technology companies determine eligibility and contribution amounts based on employee class, age, or family size. They can structure contributions as a set dollar amount or as a percentage of a benchmark healthcare plan.
Employees choose their own health insurance plan. Employees shop for and enroll in individual health insurance plans that fit their needs rather than being limited to a traditional group health option. Employees who are offered a CHOICE Arrangement for the first time qualify for a Special Enrollment Period (SEP), allowing them to enroll in individual coverage outside the annual Open Enrollment period.

With Remodel Health as your partner, technology companies get support throughout the process, from implementation and employee enrollment to compliance and premium payments.

“The CHOICE Arrangement pairs innovation with personalized healthcare, and I believe these are two things that resonate with tech companies and their employees. They want to offer exceptional benefits that move the needle for their employees while staying ahead of the curve for innovation.”

Richard Armstrong

Director of Business Development, East, Remodel Health

The CHOICE Arrangement is gaining momentum in the technology industry

Technology companies are already among the leading industries adopting CHOICE Arrangements through Remodel Health. In fact, tech ranks fifth among the industries with the most organizations served by Remodel Health, behind business services, religious organizations, healthcare, and nonprofits.

The momentum is accelerating. Looking at quoted revenue within Remodel Health's benefits administration platform, technology saw 325% growth in 2026. That puts tech among the fastest-growing industries exploring CHOICE Arrangements, behind financial services at 739% growth and social services at 420%.

This distinction matters. Adoption data shows where CHOICE Arrangements have already taken hold, while quote activity provides a window into where the market is heading next.

Employee coverage level

Average monthly contribution

Employee only

$695

Employee and dependents

$915

Employee and spouse

$968

Family

$1,167

These figures are benchmarks, not recommended contribution amounts.

The right contribution for a technology company depends on its workforce, employee locations, healthcare budget, and the cost of individual health insurance plans in each market.

Remodel Health can help employers compare their current group health plan with individual market rates and develop a contribution strategy that balances employee affordability with long-term cost control.

“The individual market is priced based on age and ZIP code. Since tech companies tend to have a younger average workforce, the price point can result in overall cost savings in many cases for these groups.”

Richard Armstrong

Director of Business Development, East, Remodel Health

Give employees the flexibility they expect

With a CHOICE Arrangement, employees aren't stuck with the same group plan as everyone else. They can select individual coverage based on their own doctors, prescriptions, preferred network, location, and budget.

Support a distributed workforce

Hybrid work and remote teams have changed where technology companies recruit talent. Employees may live across multiple states and rating areas, each with different health insurance options and costs. A single group health plan may not provide the same value, or even the same network access, to employees in different locations. A CHOICE Arrangement allows employees to shop for individual health insurance plans available in their area.

Compete for top technology talent

Technology companies compete aggressively for skilled employees. A competitive employee benefits package can help employers stand out.

“Tech companies have traditionally offered some of the richest and most innovative benefits to support recruitment, morale, and retention. Now, we’re seeing a shift toward more personalized solutions. The CHOICE Arrangement gives employees the flexibility to choose coverage that meets their individual or family needs, rather than applying a one-size-fits-all approach to the entire workforce. For a workforce built around innovation, that kind of personalization is a natural next step.”

Richard Armstrong

Director of Business Development, East, Remodel Health

Scale benefits as your company grows

A CHOICE Arrangement can support organizations ranging from small businesses offering health benefits for the first time to larger technology companies with remote teams spread across the country. Employers can establish contribution strategies based on employee classes and locations while maintaining a defined benefits budget.

Simplify benefits administration

HR teams at technology companies already manage a long list of priorities. Managing a complicated group health insurance plan shouldn't have to consume more of their time. With CHOICE Arrangements, employers can eliminate group plan renewals and participation requirements while using technology to streamline eligibility, enrollment, compliance, and premium payments.

Offer an ACA-compliant benefit

For applicable large employers (ALEs) with 50 or more full-time equivalent employees, offering an affordable CHOICE Arrangement can also help satisfy the Affordable Care Act's (ACA) employer mandate.

What makes Remodel Health different: Our ClearChoice model

For more than a decade, Remodel Health has helped organizations transition to individualized health benefits. Our team supports every stage of your CHOICE Arrangement experience.

When you partner with Remodel Health, you receive:

Structured transition management. A proven process guides your organization and employees from initial strategy through enrollment and beyond, with dedicated support at every step.
High-stakes member advocacy. Licensed Benefits Advisors help employees navigate plan selection, Medicare, qualifying life events, prior authorizations, and complex healthcare situations.
Year-round strategic support. Your dedicated account team stays engaged beyond implementation, providing compliance guidance, strategy support, and renewal planning as your benefits program evolves.
Seamless payment operations. Remodel Health pays carriers directly on employees' behalf, backed by a dedicated operations team and 99%+ AutoPay payment accuracy.

“Healthcare is local. Your plan selection should be as well.”

Richard Armstrong

Director of Business Development, East, Remodel Health

With a CHOICE Arrangement, formerly known as the individual coverage health reimbursement arrangement (ICHRA), technology companies can give employees more choice in their health insurance coverage while gaining greater control and predictability over healthcare spending.

Whether you're a growing small business or an established enterprise with a distributed workforce, Remodel Health can help you design and administer a CHOICE Arrangement that works for your organization.

Frequently asked questions

Yes. CHOICE Arrangements can be particularly well-suited to technology companies with remote workforces and fluctuating headcounts.

Yes. Employers can establish different contribution strategies for permitted employee classes. This flexibility can help technology companies design benefits that align with different workforce segments while maintaining a structured benefits strategy.

A CHOICE Arrangement uses a defined contribution model, allowing employers to determine how much they want to contribute toward employees' individual health insurance premiums. This can provide greater predictability than traditional group health insurance, where premiums may change at renewal.

Remodel Health provides end-to-end benefits administration, including plan design, implementation, employee education, enrollment support, compliance, automated premium payments, and year-round service. Our platform also integrates with more than 200 payroll and HRIS systems.

CHOICE Arrangements for technology companies

Understanding the CHOICE Arrangement for technology companies

The CHOICE Arrangement is gaining momentum in the technology industry

What are technology companies contributing to CHOICE Arrangements?

Why technology companies are turning to CHOICE Arrangements

Control your benefits budget