Understanding the New ICHRA Rules Under the One Big Beautiful Bill Act: A Game-Changer for Employers The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has brought significant changes to employee benefits, including updates to Individual Coverage Health Reimbursement Arrangements (ICHRAs). Rebranded as Custom Health Option and Individual Care Expense (CHOICE) Arrangements, these updates codify and enhance ICHRA, offering employers and employees greater flexibility and tax advantages. Below, we explore the key changes and how employers are leveraging them to optimize health benefits. Key Changes to ICHRA Under the OBBBA

• Codification into Law: Previously operating under 2019 regulatory guidance, ICHRAs are now formalized as CHOICE Arrangements in federal law, ensuring long-term stability regardless of administrative changes. This gives employers confidence in adopting and maintaining these plans.
• Increased Flexibility for Small Employers: Small businesses (fewer than 50 employees) can now offer both CHOICE Arrangements and traditional group health plans to the same employee class, a significant shift from previous restrictions. This allows tailored benefits strategies, such as offering part-time workers a CHOICE Arrangement while providing salaried employees a group plan.
• Pre-Tax Premium Payments: Employees can now pay their share of individual health insurance premiums (including ACA Marketplace plans) on a pre-tax basis through Section 125 cafeteria plans. This change enhances affordability for employees and simplifies administration for employers.
• Small Business Tax Credits: The OBBBA introduces a two-year tax credit for small businesses: $100 per employee per month in the first year and $50 per month in the second year. This incentive encourages adoption among smaller employers, making health benefits more accessible.
• Reduced Notice Period: The required notice period for informing employees about CHOICE Arrangements has been shortened from 90 days to 60 days, easing administrative burdens and allowing faster implementation.
• W-2 Reporting Requirement: Employers must now include the CHOICE Arrangement amount on employees' Form W-2, improving transparency and compliance.
  How Employers Are Taking Advantage
  • Employers are embracing CHOICE Arrangements for their flexibility, cost control, and employee satisfaction benefits. Here's how:
  • Cost Management: Unlike traditional group health plans, CHOICE Arrangements allow employers to set a fixed budget for health benefits, avoiding unpredictable premium increases. This is particularly appealing to small and midsize businesses seeking cost-effective alternatives.
  • Employee Choice and Satisfaction: Employees can select individual health plans that best fit their needs, from ACA Marketplace options to off-exchange plans. This personalization enhances employee satisfaction and helps attract talent in competitive markets.
  • Tax Advantages: The ability to offer pre-tax premium payments and the new tax credits for small businesses make CHOICE Arrangements financially attractive. Employers can provide robust benefits while reducing tax liabilities. Scalability Across Business Sizes: With no size restrictions or contribution caps, CHOICE Arrangements are scalable for businesses of all sizes, from startups to large corporations. This flexibility supports diverse workforce needs, such as varying allowances for full-time, part-time, or seasonal employees. Compliance with ACA: CHOICE Arrangements help employers meet Affordable Care Act (ACA) mandates by ensuring affordability (premiums not exceeding 9.02% of household income for self-only coverage). Employers can design plans to avoid penalties while offering employees access to Marketplace subsidies if needed. Looking Ahead The transformation of ICHRA into CHOICE Arrangements under the OBBBA, effective for plan years starting January 1, 2026, signals a shift toward portable, consumer-driven health coverage. Employers are already capitalizing on the 29% growth in ICHRA adoption from 2023 to 2024, with 83% of 2025 ICHRA-offering employers previously unable to provide health benefits. The tax credits, streamlined rules, and increased flexibility make this an opportune time for businesses to explore CHOICE Arrangements. For employers and brokers, now is the time to evaluate how these changes align with your benefits strategy. By offering tailored, cost-effective health benefits, businesses can enhance employee satisfaction while maintaining financial control. Stay ahead by consulting with benefits professionals to design a CHOICE Arrangement that works for your organization. For more details on the One Big Beautiful Bill Act, visit x.ai/grok or consult a benefits advisor.

Big changes to health insurance rules are here-and many people could lose coverage if they don't act. We're here to make sure that's not you. No More Auto-Renewals What this means: If you have an ACA Marketplace plan, you'll now need to re-apply every year. No more automatic re-enrollment. What to do:

• Mark your calendar for the shorter Open Enrollment period.
• Work with us early-we'll make sure your application is submitted on time and with all documentation.

New Income & Eligibility Checks What this means: You'll be asked to verify your income every 6 - 12 months, not just once a year. Missing paperwork could mean losing your plan or subsidies. What to do:

• Be ready to show pay stubs, tax info, or other documents during the year.
• Let us help with gathering and uploading your documents.

Premiums Might Increase What this means: Some enhanced subsidies are expiring, and premiums may rise for many households-especially middle-income families. What to do:

• Let us shop all available options-Marketplace, off-Marketplace, short-term, or employer alternatives.
• Ask about bundling dental, vision, or enhanced life and long-term care benefits.

Medicaid Changes What this means: If you or someone you love is on Medicaid, you may need to prove you're working or volunteering 80 hours/month to stay covered. What to do:

• Check if you qualify for an exemption (health, caregiving, student status).
• We'll help track and report work hours or file exemption paperwork.

Limited Coverage for Immigrants What this means: Some immigrants, including DACA recipients, may no longer qualify for ACA subsidies. What to do:

• We can explore affordable private options that don't rely on ACA subsidies.
• Ask us about guaranteed issue and low-premium limited benefit plans.

We're Here to Help At 1 Stop Benefits Inc., our licensed advisors understand the new rules-and we'll help you or your employees navigate them with confidence. 📞 Let's Make a Plan 📲 Call or Text: 1- 800-662-3982 🌐 Visit: www.1StopBenefits.com

In today's evolving healthcare environment, innovative programs are reshaping how individuals access meaningful, affordable coverage. LifeX and Population Science Management (PSM) are leading the charge by offering a unique model: contribute to public health research through short, part-time surveys-and in return, gain access to comprehensive group health insurance. How It Works Both companies hire individuals as part-time associates to complete occasional surveys- each typically taking just 5 to 10 minutes, with only a few hours required over the course of a year. Participants are paid for their time and, more importantly, gain access to high-quality, off-exchange health insurance plans. At 1 Stop Benefits, Inc., we're proud to serve as a recruiting partner for these programs, connecting individuals with this smart, impactful opportunity. It's a win-win: contribute to better public health while securing valuable coverage for yourself and your family.
Highlights of Off-Exchange Group Health Plans

• Flexible Plan Options -- Choose from a range of deductibles and coverage levels
• Great for High Earners -- Ideal for those ineligible for ACA subsidies
• Eligibility -- Available to 1099 contractors, self-employed professionals, and non-working individuals under age 65 By classifying survey participants as part-time associates, LifeX and PSM can offer group health plans-making comprehensive insurance accessible to more people, especially those who fall through the cracks of traditional systems.
  

Why PPO Networks Make a Difference Both programs offer PPO health plans, with these key advantages:

• No Balance Billing -- Pre-negotiated rates help reduce unexpected costs
• Lower Shared Expenses -- In-network care keeps your out-of-pocket costs down
• Comprehensive Benefits -- Includes telehealth, pharmacy coverage, and chronic care support
• Freedom of Access -- Nationwide networks with no referrals required
  

Network Availability

• LifeX -- Tiered premiums with access to PHCS, Cigna, and Anthem
• PSM -- Nationwide access via Blue Cross Blue Shield and PHCS
  

A Smarter Approach to Health Data Beyond providing benefits, these companies use the collected data to drive positive health change. Here's how:

• Health Surveys + EHRs -- Combine insights for a full picture of health trends
• Predictive Analytics -- Identify emerging risks and support early intervention
• Personalized Solutions -- Tailor strategies to improve community health outcomes
  

The Bottom Line: Healthier You, Healthier Communities This partnership between LifeX, PSM, and 1 Stop Benefits creates something truly unique: a way for individuals to earn supplemental income, contribute to public health, and receive the kind of health coverage often reserved for full-time employees.
Ready to learn more or see if you qualify? Reach out to 1 Stop Benefits today-we're happy to walk you through your options and answer any questions, with no pressure. Call us at 1-800-662-3982 or email: info@1StopBenefits.com to get started.