United States HR 3799: CHOICE Arrangement Act

Bill Text

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118TH CONGRESS
1ST SESSION H. R. 3799
To amend the Internal Revenue Code of 1986 to provide for health reimburse-
ment arrangements integrated with individual health insurance coverage.
IN THE HOUSE OF REPRESENTATIVES
JUNE 5, 2023
Mr. HERN introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
for health reimbursement arrangements integrated with
individual health insurance coverage.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Custom Health Option 4
and Individual Care Expense Arrangement Act’’ or the 5
‘‘CHOICE Arrangement Act’’. 6
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SEC. 2. TREATMENT OF HEALTH REIMBURSEMENT AR-1
RANGEMENTS INTEGRATED WITH INDI-2
VIDUAL MARKET COVERAGE. 3
(a) IN GENERAL.—Section 9815(b) of the Internal 4
Revenue Code of 1986 is amended— 5
(1) by striking ‘‘EXCEPTION.—Notwithstanding 6
subsection (a)’’ and inserting the following: ‘‘EXCEP-7
TIONS.— 8
‘‘(1) SELF-INSURED GROUP HEALTH PLANS.— 9
Notwithstanding subsection (a)’’, and 10
(2) by adding at the end the following new 11
paragraph: 12
‘‘(2) CUSTOM HEALTH OPTION AND INDIVIDUAL 13
CARE EXPENSE ARRANGEMENTS.— 14
‘‘(A) IN GENERAL.—For purposes of this 15
subchapter, a custom health option and indi-16
vidual care expense arrangement shall be treat-17
ed as meeting the requirements of sections 18
2711 and 2713 of title XXVII of the Public 19
Health Service Act. 20
‘‘(B) CUSTOM HEALTH OPTION AND INDI-21
VIDUAL CARE EXPENSE ARRANGEMENTS DE-22
FINED.—For purposes of this section, the term 23
‘custom health option and individual care ex-24
pense arrangement’ means a health reimburse-25
ment arrangement— 26
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‘‘(i) which is an employer-provided 1
group health plan funded solely by em-2
ployer contributions to provide payments 3
or reimbursements for medical care subject 4
to a maximum fixed dollar amount for a 5
period, 6
‘‘(ii) under which such payments or 7
reimbursements may only be made for 8
medical care provided during periods dur-9
ing which the individual is covered— 10
‘‘(I) under individual health in-11
surance coverage (other than coverage 12
that consists solely of excepted bene-13
fits), or 14
‘‘(II) under parts A and B of 15
title XVIII of the Social Security Act 16
or part C of such title, 17
‘‘(iii) which meets the nondiscrimina-18
tion requirements of subparagraph (C), 19
‘‘(iv) which meets the substantiation 20
requirements of subparagraph (D), and 21
‘‘(v) which meets the notice require-22
ments of subparagraph (E). 23
‘‘(C) NONDISCRIMINATION.— 24
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‘‘(i) IN GENERAL.—An arrangement 1
meets the requirements of this subpara-2
graph if an employer offering such ar-3
rangement to an employee within a speci-4
fied class of employee— 5
‘‘(I) offers such arrangement to 6
all employees within such specified 7
class on the same terms, and 8
‘‘(II) does not offer any other 9
group health plan to any employees 10
within such specified class. 11
‘‘(ii) SPECIFIED CLASS OF EM-12
PLOYEE.—For purposes of this subpara-13
graph, any of the following may be des-14
ignated as a specified class of employee: 15
‘‘(I) Full-time employees. 16
‘‘(II) Part-time employees. 17
‘‘(III) Salaried employees. 18
‘‘(IV) Non-salaried employees. 19
‘‘(V) Employees whose primary 20
site of employment is in the same rat-21
ing area. 22
‘‘(VI) Employees who are in-23
cluded in a unit of employees covered 24
under a collective bargaining agree-25
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ment to which the employer is subject 1
(determined under rules similar to the 2
rules of section 105(h)). 3
‘‘(VII) Employees who have not 4
met a group health plan, or health in-5
surance issuer offering group health 6
insurance coverage, waiting period re-7
quirement that satisfies the require-8
ments of section 2708 of the Public 9
Health Service Act. 10
‘‘(VIII) Seasonal employees. 11
‘‘(IX) Employees who are non-12
resident aliens and who receive no 13
earned income (within the meaning of 14
section 911(d)(2)) from the employer 15
which constitutes income from sources 16
within the United States (within the 17
meaning of section 861(a)(3)). 18
‘‘(X) Such other classes of em-19
ployees as the Secretary may des-20
ignated. 21
An employer may designate (in such man-22
ner as is prescribed by the Se