Bill > HR5463

This bill introduces a new type of health reimbursement arrangement called a "Custom Health Option and Individual Care Expense Arrangement" that would allow employers to provide tax-advantaged funds to employees specifically for purchasing individual health insurance coverage. The arrangement has several key requirements, including that employers must offer the arrangement to all employees within a specified class (such as full-time or part-time workers) on the same terms, the funds can only be used for individual health insurance or Medicare coverage, and there are substantiation and notice requirements. The bill also creates a tax credit for eligible employers (typically smaller businesses) who establish these arrangements, providing $100 per employee per month in the first year and half that amount in the second year. Additionally, the bill allows employees participating in these arrangements to purchase health insurance through exchange plans using pre-tax dollars under a cafeteria plan, which is currently prohibited. These provisions would take effect for plan and tax years beginning after December 31, 2025, and are designed to provide more flexible and potentially more affordable health coverage options for employees, particularly in smaller businesses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/5463/all-info