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Your Coverage Options After CHOICE (formerly ICHRA)

If your employer has decided to discontinue its Custom Health Option and Individual Care Expense (CHOICE) Arrangement, review the information below...

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Written by Regina Rovira

If your employer has decided to discontinue its CHOICE (formerly ICHRA), review the information below to understand your options. While you will no longer receive CHOICE contributions from your employer, you still have several ways to maintain health insurance coverage. This guide answers common questions and helps you navigate the transition.

Understanding the Change

What is a CHOICE, and what does it mean that it is ending?

A Custom Health Option and Individual Care Expense (CHOICE) Arrangement is an employer-funded benefit that reimburses you for individual health insurance premiums and, in some cases, other qualified medical expenses.

If your employer discontinues the CHOICE, you will no longer receive reimbursements. However, this does not cancel your existing health insurance plan. Your coverage will remain active as long as you continue paying your premiums.

Will I lose my health insurance immediately?

No. If you are enrolled in an individual plan, your coverage continues. You will simply be responsible for the full premium moving forward.

If you want to switch plans or find a more affordable option, you may qualify for a Special Enrollment Period (SEP) (see below).

Note: If you have a CHOICE or CHOICE Premium Plus plan through Vitable, you must contact your insurance carrier to update your payment method to avoid a lapse in coverage (see instructions below). If you have been submitting reimbursements every month, you can continue using your current payment method.

Am I eligible for COBRA?

While you are eligible for COBRA due to your company’s termination of CHOICE, we typically don’t recommend enrolling. COBRA can add unnecessary administrative costs and make managing your individual policy more complicated. If you’d like to keep your current plan, we recommend updating your payment method directly with your carrier instead.

If you enrolled in COBRA, you would be responsible for 100% of the premium plus at least a 2% administrative fee, in addition to coordinating monthly payments through your current or former employer—adding cost and hassle without added benefit.

Keeping or Finding Coverage

What are my options for health insurance going forward?

You generally have several paths:

  • Keep your current plan: You can keep your existing individual plan and continue paying the full premium yourself. To do this, you’ll need to update your payment method directly with your insurance carrier.

  • Shop on the Marketplace: Visit HealthCare.gov (or your state’s Marketplace) to compare plans. You may find a plan with a lower premium, or you may now qualify for financial help (see the Premium Tax Credits section below).

  • Join a spouse’s or partner’s plan: If your spouse or domestic partner has employer-sponsored coverage, you may be able to join their plan.

  • Medicaid or CHIP: If your household income is low enough, you may qualify for Medicaid or the Children’s Health Insurance Program (CHIP). You can check eligibility at HealthCare.gov.

Can I enroll in a Marketplace plan outside of Open Enrollment?

Yes. Losing your CHOICE is a qualifying life event, which triggers a 60-day Special Enrollment Period (SEP).

To enroll:

  • Visit HealthCare.gov or your state Marketplace

  • Select “Loss of health coverage” as your qualifying event

  • Provide documentation (such as an employer letter confirming your ICHRA end date, if requested)

What if I miss the 60-day Special Enrollment Period?

If you miss the 60-day window, you will generally need to wait until the next annual Open Enrollment Period to enroll in or change a Marketplace plan. Open Enrollment typically runs from November 1 through January 15. However, Medicaid and CHIP enrollment is available year-round if you qualify.

Premium Tax Credits and Financial Assistance

What is the Premium Tax Credit, and am I eligible?

The Premium Tax Credit is a federal subsidy that lowers monthly health insurance costs for Marketplace plans.

You may qualify if:

  • You enroll through HealthCare.gov or your state Marketplace

  • Your household income is generally between 100%–400% of the Federal Poverty Level (FPL)

  • You are not eligible for other qualifying coverage (e.g., Medicare or affordable employer coverage)

  • You file a federal tax return (if required)

I was previously told I couldn’t get subsidies because I had a CHOICE Arrangement. Has that changed?

Yes. If your CHOICE was considered “affordable,” you were not eligible for subsidies. Now that it has ended, you may qualify for Premium Tax Credits based on your income.

This is one of the most important financial changes to review.

Resources

Need More Help?

If you have any questions, our support team is here to help! We're available Monday to Friday from 9 AM to 9 PM EST and on weekends from 9 AM to 5:00 PM EST. You can reach us through the following contact methods:

We’re here to support you every step of the way!

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