HSA + CHOICE Accounts for Employers
Flexible, Compliant Health Benefits for Your Workforce
Offering traditional group health insurance can be expensive, complex, and restrictive, especially for businesses with diverse teams or high turnover. A CHOICE Account, formerly an Individual Coverage Health Reimbursement Arrangement (ICHRA), paired with a Health Savings Account (HSA) provides a modern, flexible solution that works for both employers and employees. With a CHOICE Account + HSA, you can give employees choice and tax-advantaged savings while keeping your costs predictable and your program compliant.
How it Works
CHOICE Account– Employers fund a monthly allowance that employees use to purchase their own individual health plan. There’s no carrier underwriting, no participation minimums, and no limits tied to industry or location.
HSA – Employees can pair their CHOICE Account-funded plan with an HSA if it’s an HSA-eligible high-deductible plan. They contribute pre-tax dollars, watch savings grow tax-free, and withdraw funds tax-free for qualified medical expenses.
Together, CHOICE Account+ HSA gives employees choice, portability, and tax-advantaged savings, while employers maintain predictable, compliant costs.
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.
Benefits
- Predictable monthly employer costs and no participation requirements
- Flexibility to scale benefits for a diverse workforce across roles, locations, or offices
- Employees select plans that meet their needs and maintain coverage if they change jobs
- Access HSA-eligible plans for tax-free contributions, growth, and withdrawals
- Enhance recruitment and retention with benefits that empower employees
- Full ACA compliance with minimal administrative complexity
Features
- Employer-funded allowance employees use to purchase individual marketplace plans
- Works across multi-location, dispersed, or high-turnover workforces
- Compatible with HSA-eligible HDHPs for enhanced tax advantages
- Portability and scalability for both employees and employers
- Compliant structure meeting ACA standards without complex participation rules
- Simplified administration through a centralized partner platform
Real-World Example
A 50-employee company switched from struggling with rising group plan premiums to offering CHOICE Accounts. They set allowances of $500/month for employees, $1,000/month for families. Employees found plans 25–30% cheaper on average than group quotes, and the employer gained budget certainty while expanding to new locations without negotiating new carriers.
Ready to Take the Next Step?
Quick Comparison
Traditional Group Plan
|
CHOICE Account + HSA |
100+ marketplace plans |
Personalized coverage |
Fixed monthly allowance |
No minimums |
Businesses can finally offer competitive, flexible, and compliant health benefits with CHOICE Account and HSA. Ameriflex makes it easy, providing the expertise, technology, and support to deliver benefits that grow with your business and empower your team.