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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.

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