By Bobby Jindal and Fran Soistman

Business leaders and policymakers have been sounding the alarm for years: The employer-sponsored health insurance model is unsustainable. But with the cost of group health insurance premiums up 25% in five years, a fix may be in the works.

Introduced during the first Trump administration, individual coverage Health Reimbursement Arrangements continued to receive federal support through the Biden years. Now, if key provisions under consideration in the “One Big Beautiful Bill” are passed, Congress will expand ICHRAs (renaming them “CHOICE” arrangements) and transform them into a compelling alternative to traditional group health insurance.

Just as we saw a transition away from employer pension plans to 401(k) plans for retirement, many believe we’re starting to see a comparable shift in the way health benefits work. As an alternative to the costly group health insurance model, ICHRA allows companies to make tax-preferred contributions toward the premiums of health plans employees select for themselves and their families in the open market. Plans must meet federal minimum coverage standards to be qualified…

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