CHOICE Account
Tax-free reimbursements for health insurance premiums and medical expenses
Overview & Eligibility
A CHOICE Account, formerly known as an Individual Coverage HRA (ICHRA), allows employers to reimburse employees tax-free for individual health insurance premiums rather than purchasing insurance for them. Employees choose and purchase their own health plan through the individual market and receive tax-free reimbursements for eligible premiums.
CHOICE Accounts have no contribution limits.
How it Works
Employers can offer both a group health plan and a CHOICE Account, but not to the same employee groups. Employees who are not enrolled in the group health plan can participate in the CHOICE Account.
- 1Employer establishes a reimbursement limit and qualified medical expenses.
- 2Employees choose the health insurance plans they want.
- 3Employees pay their premiums using an Ameriflex Debit Mastercard®, or
- 4They pay their premiums out of pocket and submit a claim form for reimbursement.
- 5Employees get reimbursed for eligible claims paid out of pocket.
The Value for Employees
CHOICE Account funds can be spent on insurance premiums, eligible healthcare expenses, or both, depending on how the employer sets it up. This allows employees to choose a health plan that best fits their needs.
Employers fund the CHOICE Account to offset rising healthcare costs and offer employees a convenient way to pay for health insurance.
Employees will receive an Ameriflex Debit Mastercard® linked to their CHOICE Account. Employees can use their card for eligible purchases everywhere Mastercard® is accepted. Account information can be securely accessed 24/7 online and through the mobile app.
The Value for Employers
Employers can designate employee classes and reimburse different amounts to those classes in a fair manner. CHOICE Accounts also provide more predictability around monthly costs vs. a group health plan.
Employers can set up the CHOICE Account to reimburse health insurance premiums, healthcare expenses, or both. There is no maximum reimbursement limit. A CHOICE Account can also be combined with a health savings account (HSA).
Healthcare is complicated. The Ameriflex Client Relationship Team is eager to answer questions and provide assistance. Our 85+ Net Promoter Score (NPS) far exceeds the healthcare average.
A Simple, Predictable CHOICE Account Funding Model
To ensure a seamless experience for you and your employees, your CHOICE Account operates on a predictable, automated monthly schedule. Collecting funds prior to the coverage month eliminates guesswork, avoids funding-related delays, and ensures employee accounts are funded when needed.
How the Monthly Schedule Works
Advance Collection: Funds are automatically collected via ACH on or around the 15th of the month preceding the coverage month.
Modernize Your Health Benefits With Flexibility and Control
Large companies are under constant pressure to control rising healthcare costs while meeting the needs of a diverse, multi-location workforce. According to the 2024 HRA Council Data Report, CHOICE Account adoption grew by 62% among businesses with over 100 employees. Why? Because CHOICE Accounts bring predictability, choice, and streamlined administration to organizations that need scalable solutions.
Benefits for Employees
- More Choice: Employees choose plans that fit their specific needs, location, and lifestyle.
- Improved Satisfaction: No more one-size-fits-all coverage. A CHOICE Account allows individualized selection.
Coverage That Travels: Employees working remotely or moving across states maintain continuous care.
Benefits for Employers
- Cost Predictability: Set tax-free reimbursement amounts instead of absorbing unpredictable premium increases.
- Admin Simplification: Integrates with HR tech to reduce the burden of managing traditional group plans.
- Workforce Alignment: Tailors benefits to suit a wide variety of employee roles and demographics.
Why It Matters
A CHOICE Account empowers large organizations to offer flexible, tech-enabled benefits that reflect the complexity of their workforce, making it easier to attract, retain, and support talent at scale.
Level the Playing Field With Flexible, Cost-Controlled Health Benefits
Small businesses often face the impossible trade-off between offering competitive benefits and managing tight budgets. According to the 2024 HRA Council Data Report, 84% of new CHOICE Account adopters are small businesses offering health benefits for the first time. A CHOICE Account makes it possible to provide real, tax-free health benefits without breaking the bank.
Benefits for Employees
- Custom Plans: Employees choose coverage that suits their individual needs.
- Greater Access: Even businesses with just a few employees can offer meaningful benefits.
- Freedom & Flexibility: Coverage follows employees regardless of business growth or role changes.
Benefits for Employers
- Lower Costs: Avoid the steep premiums and participation rules of group plans.
- Simple Setup: Define a monthly allowance and let employees handle plan selection.
- Compete for Talent: Attract strong candidates with modern benefits that rival big companies.
Why It Matters
With CHOICE Accounts, small businesses can punch above their weight while offering competitive health benefits that enhance hiring, retention, and morale without administrative headaches.
Overcome Industry Barriers With Individualized Health Coverage
Cannabis companies face unique obstacles when it comes to employee benefits from federal regulations to limited access to traditional insurance carriers. According to the 2022 Cannabis Industry Salary Guide, 71% of cannabis employers offer healthcare benefits. A CHOICE Account is a compliant, flexible solution that helps cannabis businesses offer real health coverage without running into regulatory roadblocks.
Benefits for Employees
- Real Choice: Employees select the plans that suit their lifestyle, risk profile, and location.
- Coverage Portability: CHOICE Account plans follow employees between jobs, states, or roles.
- Stigma-Free Support: Individualized plans reduce exposure to carrier-level cannabis industry bias.
Benefits for Employers
- Avoid Federal Compliance Issues: CHOICE Accounts work with individual plans and avoids group policy limitations.
- Attract Talent: Stand out with benefits, even in a highly competitive, fragmented job market.
- Multi-State Flexibility: Easily manage benefits across locations with varying regulations.
Why It Matters
CHOICE Accounts offer cannabis employers a legitimate, flexible way to care for their workforce, helping them build loyalty, improve hiring, and stay compliant in a tightly regulated space.
Support Distributed Teams With Smart, Modern Health Benefits
Startups face unpredictable growth, lean budgets, and fierce competition for top talent. Traditional group insurance is often too rigid for this fast-paced environment. A CHOICE Account offers a solution that adapts as your team scales. According to a 2024 Forbes article, benefits cutbacks drastically reduce morale and productivity, making CHOICE Accounts a powerful retention tool.
Benefits for Employees
- Choice & Customization: Employees pick plans that match their health needs and preferences.
- Remote Ready: CHOICE Accounts support fully distributed teams with location-independent coverage.
- Portable: Benefits stay with employees, even through role changes or startup pivots.
Benefits for Employers
- Scalable Design: Adjust contributions as the team grows with no multi-year premium lock-ins.
- Talent Magnet: Attract skilled workers with tech-forward, personalized benefits.
- Lean Admin: Set it, automate it, and focus on growing your business.
Why It Matters
CHOICE Accounts help startups offer premium benefits without the premium cost, making it easier to grow smart, retain talent, and stay nimble in a competitive landscape.
Custom Benefits for Project-Based Workers
In construction, workers are often project-based, seasonal, or in remote locations, making traditional group health plans a poor fit. According to the Bureau of Labor Statistics, 78% of private construction workers are offered medical benefits. For those not offering benefits, the risk is high: skilled workers will move to employers who do. CHOICE Accounts provide an affordable, flexible solution that fits the structure of modern construction teams.
Benefits for Employees
- Coverage That Travels: Portable individual plans are ideal for workers moving between sites or contracts.
- Better Access: Rural and high-risk workers can find plans that meet their needs.
- Peace of Mind: Workers get real healthcare support, which boosts loyalty and focus on the job.
Benefits for Employers
- Project-Based Flexibility: Only offer benefits to active workers, with no long-term group commitments.
- Compliance Made Easy: Avoid participation rate issues common in traditional group plans.
- Workforce Stability: Attract and retain skilled tradespeople with modern, appealing benefits.
Why It Matters
CHOICE Accounts allow construction companies to provide real, competitive health benefits that reflect how the industry actually works, supporting recruitment, retention, and compliance without waste.
Support a Diverse, High-Demand Workforce With Smarter Health Coverage
Healthcare employers are under growing pressure to provide competitive, cost-effective benefits to part-time, contract, and multi-state employees. According to the Bureau of Labor Statistics, healthcare will account for 45% of all new U.S. jobs from 2022 to 2032. CHOICE Accounts empowers healthcare organizations to offer flexible, portable benefits that match the pace and diversity of the sector.
Benefits for Employees
- Personalized Plan Options: Choose coverage based on role, location, and medical needs.
- Access for All: Include part-time and contract workers often excluded from group plans.
- Continuity of Care: Plans stay with employees across job changes or locations.
Benefits for Employers
- Works Across States: CHOICE Accounts adjust to state-specific marketplaces with ease.
- Retention Boost: Help keep top talent with meaningful, portable benefits.
- Simplified Admin: Offer coverage across a variety of roles without group plan red tape.
Why It Matters
CHOICE Accounts give healthcare employers the tools to support their workforce while controlling costs, helping them improve retention and remain competitive in a rapidly expanding field.
Flexible, Affordable Health Coverage That Keeps Your Team Coming Back
With high turnover, part-time staff, and seasonal work, hospitality businesses often struggle to offer traditional health benefits. Yet competitive benefits are crucial for employee retention and business stability. According to the BLS, only 24% of part-time workers in 2023 had access to health insurance. CHOICE Accounts give hotels, restaurants, and service businesses the power to offer real coverage without breaking the bank.
Benefits for Employees
- Customized Coverage: Choose plans that match hours, lifestyle, and budget.
- Inclusive: Extend benefits to part-time and seasonal employees.
- Consistent: Coverage follows employees between roles or locations.
Benefits for Employers
- Pay-as-You-Go: Only pay for employees who opt in.
- Flexible Staffing Support: Adaptable for high-turnover, variable workforces.
- Budget-Conscious: Set predictable contributions, even on tight margins.
Why It Matters
CHOICE Accounts empower hospitality employers to offer meaningful benefits that boost retention, support part-time workers, and foster a more loyal, stable team.
Offer Flexible, Affordable Coverage No Matter Your Size or Staff Structure
Retail employers manage variable hours, seasonal hires, and often multiple locations. Offering health insurance that works for everyone can be tough. According to the BLS, 65% of retail workers had access to employer-sponsored insurance in 2023. CHOICE Accounts help retailers deliver flexible, tax-free health benefits that are easy to administer and attractive to employees.
Benefits for Employees
- Tailored Plans: Employees pick what works for them with customizable coverage.
- Access for Part-Time: Include staff who usually don’t qualify for group plans.
- Portable: Coverage follows workers between stores or shifts.
Benefits for Employers
- Flexible Staffing Ready: CHOICE Accounts support part-time and seasonal models.
- Franchise-Friendly: Standardize contributions across locations while allowing plan choice.
- Low Admin Load: Avoid group plan complexity. Set an allowance and go.
Why It Matters
CHOICE Accounts enable retailers to offer competitive health benefits that scale with their business, support retention, and attract dependable staff.
Support Full-Time, Part-Time, and Adjunct Staff With Flexible, Personalized Health Coverage
Educational institutions serve a wide range of employees from tenured professors to part-time instructors and support staff. While public educators often have strong coverage, many others are left behind. CHOICE Accounts allow schools and universities to provide flexible, inclusive health benefits that meet everyone’s needs.
Benefits for Employees
- Customizable Coverage: Choose plans based on health needs and family status.
- Inclusive: Part-time and adjunct staff gain access to employer-supported benefits.
- Portable: Benefits follow faculty between roles, semesters, or campuses.
Benefits for Employers
- Streamlined for Complex Structures: One benefit model for many roles.
- Cost Predictable: Set fixed monthly contributions within budget constraints.
- Competitive Advantage: Attract and retain faculty with better benefits.
Why It Matters
CHOICE Accounts give educational institutions a flexible, cost-effective way to care for their full academic community without overcomplicating benefits administration.
Empowering the Modern Workforce With Personalized, Portable Health Benefits
As freelancing becomes a dominant employment model, access to employer-supported health coverage remains limited. CHOIXE Accounts give independent workers the freedom to choose their own plans while allowing companies to support their wellbeing without traditional employment structures.
Benefits for Freelancers & Contractors
- Health Security: Choose plans tailored to income, needs, and family.
- Employer Support: Receive reimbursements from clients or companies.
- Freedom: Stay covered between contracts or across gigs.
Benefits for Employers
- No Group Plan Required: Offer benefits without creating employee relationships.
- Attract Quality Talent: Stand out to in-demand freelancers.
- Scalable: Works across states, roles, and projects.
Why It Matters
CHOICE Accounts bridge the gap between independence and support, helping freelancers stay covered while businesses build stronger relationships with top-tier contractors.
CHOICE Account FAQ
What is a CHOICE Account and how is it different from a traditional group plan?
A CHOICE Account, formerly known as an Individual Coverage Health Reimbursement Arrangement (ICHRA), is an employer-funded benefit that reimburses employees tax-free for individual health insurance premiums and eligible medical expenses. Unlike traditional group plans, employees shop for their own coverage, giving them more choice while employers control costs with a set reimbursement limit.
Who can offer a CHOICE Account?
Employers of any size can offer a CHOICE Account. You can even offer both a group plan and a CHOICE Account, as long as they’re provided to different employee classes, making it a flexible option for diverse or distributed workforces.
How do employers control costs with a CHOICE Account?
Employers set reimbursement limits for each employee class, giving them predictable, fixed costs. There’s no maximum contribution limit, so employers decide how much to offer and can tailor amounts for different groups in compliance with IRS rules.
Can a CHOICE Account work for remote or multi-state employees?
Yes. Because employees select individual market plans, they can choose coverage available in their state or region. This makes CHOICE Accounts a great solution for distributed teams or areas where group plan networks may be limited.
What expenses can employees be reimbursed for?
Depending on plan design, employees can be reimbursed for individual health insurance premiums, out-of-pocket medical costs, or both.
How does a CHOICE Account support recruitment and retention?
Offering a CHOICE Account gives employees the flexibility to choose coverage that fits their needs. This modern, personalized benefit can help differentiate your organization in competitive markets and attract and retain quality talent.