ICHRA is now called a CHOICE Arrangement. Here’s what changed — and what didn’t.

What happened

On September 3, 2026, the U.S. Small Business Administration, the Department of Health and Human Services and the Centers for Medicare & Medicaid Services announced a new name for the Individual Coverage Health Reimbursement Arrangement: the CHOICE Arrangement.

CHOICE stands for Custom Health Option and Individual Care Expense Arrangement. HealthCare.gov and the SBA now describe it as “formerly known as” an ICHRA, and the federal agencies have published new pages and outreach material under the new name.

What changed

• The name federal agencies use, on HealthCare.gov, SBA.gov and in their outreach to employers.
• The visibility. The rename came with a push to tell small businesses the option exists — which is likely to mean more employers, brokers and employees hearing about it for the first time.

What didn't change

The rules. Everything about how the arrangement works is the same:

Is this a new law?

No. Congress has considered writing the arrangement into statute under the CHOICE name, and the House passed versions in 2025, but as of October 2026 none has become law. The September 2026 change is a rename by the agencies that oversee the benefit, not new legislation — the arrangement still rests on the regulations finalized in 2019.

If Congress does act, the details could matter — for example, if it changed how the benefit interacts with cafeteria plans or added a small-business tax credit. We'll update this page if that happens.

Which name should you use?

Both, for now. “ICHRA” is still what most employers, brokers and benefits platforms say, and it's what most of your employees will search for. “CHOICE Arrangement” is what federal agencies now use, and it's what employees may see if they apply on HealthCare.gov.

If you're writing to employees, a short line covers it: “Your Individual Coverage HRA — now also called a CHOICE Arrangement — gives you a monthly allowance toward the health insurance you choose.”

For everything else about how it works, see the complete ICHRA guide.