Employer sets the allowance
Allowance by employee group and amount creates a predictable benefits budget and clear employee examples.
CHOICE Arrangement (formerly ICHRA)
Defined contribution toward individual coverage employees choose
A CHOICE Arrangement — formerly an Individual Coverage Health Reimbursement Arrangement (ICHRA) — lets employers set an allowance for individual health coverage. DefinedChoice is the workspace that runs the end-to-end workflow from design to employee guide.
The model
What a CHOICE Arrangement is
Employers decide how much to contribute by employee group (permitted classes under ICHRA rules). Employees shop individual-market coverage. The arrangement is still employer-sponsored — with a defined contribution instead of a single group plan for everyone.
Employees choose coverage
Individual-market options that fit location, doctors, and household — with employer dollars applied.
Brokers run the case
Design, propose, educate, and renew in one workspace instead of rebuilding decks every cycle.
Compare
Group medical vs. CHOICE
Side-by-side topics used in discovery and education.
| Topic | Traditional group | CHOICE Arrangement |
|---|---|---|
| Employer role | Selects group plan(s) | Sets defined contribution / allowance |
| Cost control | Tied to group premiums & design | Budget by employee group and amount |
| Employee choice | Limited group menu | Shop individual coverage that fits |
| Geography | Harder multi-state | Works across locations & employee groups |
Go deeper
Educational resources
What is ICHRA / CHOICE?
Plain-language explainer of the model and terminology.
Read →Why “CHOICE Arrangement”?
How we use the name alongside the regulatory ICHRA term.
Read →How it works
End-to-end DefinedChoice workflow.
See flow →Run CHOICE Arrangements in DefinedChoice
Open the workspace demo or request a quote for your agency or benefits team.