State Spotlight: Indiana
At A Glance: Indiana
1st
state in the nation to enact a CHOICE Arrangements tax credit
$600
per covered worker over two years, for employers with fewer than 50 employees
$10M
annual state pool supporting the credit
$400 → $200
year one maximum, then year two maximum, per employee
Indiana was the first state in the nation to pass a tax credit for employers that adopt CHOICE Arrangements (formerly Individual Coverage Health Reimbursement Arrangements, or ICHRA). The credit gives small businesses a way to offer health coverage while offsetting the cost of getting started. Because the annual state pool is capped, employers who move early stand to benefit most.
Indiana small businesses should talk with their broker, tax advisor, or benefits partner about whether a CHOICE Arrangement fits their workforce. For small businesses, the credit makes offering coverage more affordable and predictable. For employees, it means coverage they choose for themselves instead of a single employer-selected plan. For policymakers, Indiana is a state-level model for modernizing employer-sponsored healthcare without dismantling existing coverage structures.
This State Spotlight breaks down who qualifies, the three steps from setting a budget to getting employees covered, and how to claim the credit in the Indiana tax process, including what employers should have ready.
Download the Indiana materials below.