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Employers could give workers cash they can use to purchase individual health coverage under legislation passed by the U.S. House on Wednesday.

The Custom Health Option and Individual Care Expenses (CHOICE) Arrangement Act codifies the health reimbursement arrangements established by the Trump administration in 2019, which allow business owners to reimburse their employees for individual health insurance plans as well as provide tax-advantaged funds for qualified medical expenses. It is meant to provide an alternative to employer-provided health plans, which are tax-privileged under current law.

“Washington should not stand in the way of workers getting the health-care coverage that’s best for them and their families,” said Rep. Jason Smith, R-Mo., chair of the House Ways and Means Committee. “Just as important, workers should be able to take their insurance plan with them if they leave their current job. This bill gives small businesses the opportunity, if they so choose, to shed the administrative burden of managing traditional insurance coverage. At the same time, it gives workers more options for their own health care and makes that coverage portable.”

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