US Federal 2025-2026 Regular Session

US Federal Senate Bill SB2875

Introduced
9/18/25  

Caption

CHOICE Act Custom Health Option and Individual Care Expense Act

Impact

If enacted, SB2875 would directly impact the way employers can provide healthcare benefits through HRAs. It allows for employer-funded arrangements to be defined clearly under federal tax law, thereby offering potential tax credits for eligible small businesses operating these plans. The intention is to promote the use of HRAs as a vehicle for providing personalized healthcare options that suit the varying needs of employees. This change could significantly influence employer behavior, leading to increased adoption of HRAs across different sectors.

Summary

SB2875, known as the CHOICE Act, aims to amend the Internal Revenue Code to provide specific treatment for health reimbursement arrangements (HRAs) that are integrated with individual market coverage. The bill proposes a framework under which HRAs funded solely by employer contributions can be utilized to reimburse employees for medical care. The adjustments are intended to streamline compliance and enhance employee access to healthcare, encouraging employers to offer these customized health options to their employees.

Contention

Discussions surrounding SB2875 may include concerns about the implications of reducing federal oversight over health reimbursements, as some critics argue this could lead to inequities in healthcare access. Furthermore, there could be debates on the adequacy of protections for employees participating in such arrangements, particularly regarding affordability and comprehensiveness of the coverage provided under the new HRA definitions. Additionally, the potentialfor a tax credit might face scrutiny regarding its sufficiency to incentivize widespread employer participation.

Companion Bills

US HB5463

Related Choice Arrangement

US HB1

Related FEHB Protection Act of 2025

Previously Filed As

US HB6512

Putting Patients First Healthcare Freedom Act End Taxpayer Funding of Gender Experimentation Act of 2025 No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025 Fighting Waste Fraud and Abuse in the Unaffordable Care Exchanges Act of 2025 New Health Options Act IMPACT Act of 2025. Improved Medical Patients Affordable Care Today Act of 2025 Health Coverage Choice Act Small Business Flexibility Act Self-Insurance Protection Act CHOICE Arrangement Act More Affordable Care Act

US HB5463

Choice Arrangement

US SB3221

Expanding Health Care Options for First Responders Act

US HB6147

Expanding Health Care Options for First Responders Act

US HB6232

HOPE Act Bipartisan Healthcare Optimization, Protection, and Extension Act

US HB7335

Humanitarian Standards for Individuals in ICE and CBP Custody Act

US SB933

Health care; creating the Right to Try for Individualized Treatments Act; authorizing individualized investigational treatments for eligible patients. Effective date.

US HB955

HOPE Act of 2025 Health Out-of-Pocket Expense Act of 2025

US HB5498

Small Business Health Options Awareness Act of 2025

US SB368

Enacting the health care sharing ministries tax deduction act to provide a subtraction modification for qualified health care sharing expenses paid by a qualified individual and certain qualified health care shares received by a qualified individual.

Similar Bills

No similar bills found.