Small businesses could get tax credits for helping employees pay for health insurance.
Employers could soon offer a new type of health reimbursement arrangement, called a CHOICE arrangement. It would allow them to help employees pay for medical costs. Eligible small employers would receive a tax credit for offering these arrangements. Employees could also use pre-tax money from cafeteria plans to buy health insurance from the marketplace.
Today, health reimbursement arrangements (HRAs) linked to individual health insurance may face specific regulatory challenges. After this bill, a new type of HRA called a CHOICE arrangement would be established, clearly defined, and treated as meeting certain health law requirements. Eligible small employers would also receive a new tax credit of $100 per month per employee in the first year and $50 in the second, for offering these arrangements. Employees with CHOICE arrangements could also use cafeteria plans to buy health insurance from the marketplace.
S 2875 · 119th Congress · September 18, 2025 · AI Summary by gemini-2.5-flash · 10/10
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