JP Morgan Chase: Main Street needs better health coverage options

CHOICE arrangements, previously called Individual Coverage Health Reimbursement Arrangement (ICHRAs), are one strong potential alternative to small-group plans. These arrangements allow businesses to set a defined pre-tax contribution toward health benefits, and, in turn, employees can then use that contribution to help pay for coverage and select the health plan that best fits their needs. However, these plans are not always well-understood by benefits decision-makers as an option for their employees. We partnered with the Employee Benefit Research Institute (EBRI) to survey 1,000 people who make benefits decisions to understand interest in CHOICE arrangements. Just under half of small businesses are aware of CHOICE arrangements today. But among those that don’t yet offer coverage, one in four say they would prefer a CHOICE arrangement over a traditional group plan. Small businesses also reported they are more likely to adopt a CHOICE arrangement if their broker recommends it. These findings point to a clear takeaway: if we close the awareness gap and strengthen confidence in the market, more small businesses could use CHOICE arrangements.