# 119-hr-5463: Choice Arrangement

119-hr-5463, Choice Arrangement, is a 119th Congress bill sponsored by Rep. Hern, Kevin [R-OK-1] (R-OK); status introduced; PRIA reads it as touching household money (as of 2026-07-22).

- Canonical: https://policyrisk.com/legislation/119-hr-5463
- As of: 2026-07-22
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-5463
- Congress: 119
- Title: Choice Arrangement
- Status: introduced
- Introduced: 2025-09-18
- Sponsor: Rep. Hern, Kevin [R-OK-1] (R-OK)
- Cosponsors: 11
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-07-22

## Summary

**Would create a new employer-funded CHOICE arrangement that coordinates reimbursements with individual-market or Medicare coverage.** It would also establish a targeted employer tax credit for the first two years and add W-2 reporting plus verification and notice rules. - Employees and families: Workers could receive employer payments or reimbursements for medical care only while they have individual market or Medicare coverage. Being in a CHOICE arrangement would not stop an employee from buying exchange coverage through a cafeteria plan. - Employers: Employers may offer CHOICE arrangements to defined classes of employees under nondiscrimination, substantiation, and notice rules. Eligible employers that are not large employers could get a credit equal to $100 per enrolled employee per month in year one and $50 per month in year two for the first two years. - Administration and reporting: The total permitted CHOICE benefits must be reported on employees’ W-2s and federal agencies would adjust rules to implement the changes. The provisions would apply to plan years and taxable years beginning after December 31, 2025.

## Cosponsors (11)

- Rep. Van Duyne, Beth [R-TX-24] (R-TX), 2025-09-18T00:00:00.000Z
- Rep. Tenney, Claudia [R-NY-24] (R-NY), 2025-09-18T00:00:00.000Z
- Rep. Malliotakis, Nicole [R-NY-11] (R-NY), 2025-10-08T00:00:00.000Z
- Rep. Steube, W. Gregory [R-FL-17] (R-FL), 2025-10-21T00:00:00.000Z
- Rep. Miller, Max L. [R-OH-7] (R-OH), 2025-10-21T00:00:00.000Z
- Rep. Yakym, Rudy [R-IN-2] (R-IN), 2025-11-17T00:00:00.000Z
- Rep. Fitzgerald, Scott [R-WI-5] (R-WI), 2025-11-17T00:00:00.000Z
- Rep. Moran, Nathaniel [R-TX-1] (R-TX), 2025-11-20T00:00:00.000Z
- Rep. Van Orden, Derrick [R-WI-3] (R-WI), 2026-03-05T00:00:00.000Z
- Rep. Onder, Robert F. [R-MO-3] (R-MO), 2026-07-09T00:00:00.000Z
- Rep. Smith, Adrian [R-NE-3] (R-NE), 2026-07-20T00:00:00.000Z

## Provisions PRIA read

- Small-business tax credit for CHOICE: benefit, high. Small employers that are not applicable large employers could get a new tax credit for offering CHOICE. It would pay $100 per enrolled employee per month in year one, and $50 per month in year two. The credit would run for the first two one‑year periods after the employer starts CHOICE, and amounts…
- New employer health account for individual plans: benefit, medium. This bill would let employers offer a new CHOICE health account. The employer would fund it and set a dollar limit. It would only pay for care while you have individual health insurance (not excepted benefits) or Medicare Parts A and B, or Part C. Plans would start for plan years beginning after De…
- Employer rules for offering CHOICE plans: mixed, medium. Employers would need to offer CHOICE on the same terms to everyone in a chosen employee class, like full-time, part-time, seasonal, or union groups. They generally could not also offer another group health plan to that class, with limited small‑group exceptions. Employers could vary maximum benefit…
- Cafeteria option and W-2 reporting for CHOICE: mixed, low. If you are in a CHOICE plan, you would still be able to use your employer’s cafeteria plan to buy individual market insurance. Employers would also need to show the total CHOICE benefits on your Form W‑2. These changes would apply for plan years beginning after December 31, 2025.
- Agencies would update HRA rules: mixed, low. Treasury, HHS, and Labor would update 2019 HRA rules to fit the new CHOICE framework. References to custom health options would be treated as including individual coverage HRAs. This is a regulatory update, not a direct payment.

## Related bills

- 119-hr-1422: Enhanced Iran Sanctions Act of 2025
- 119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025
- 119-hr-1301: Death Tax Repeal Act
- 119-hr-703: Main Street Tax Certainty Act
- 119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act
- 119-hr-987: Fair Access to Banking Act

## Sources
- [119-hr-5463 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/5463)

## Related
- [119-hr-1422: Enhanced Iran Sanctions Act of 2025](https://policyrisk.com/legislation/119-hr-1422)
- [119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025](https://policyrisk.com/legislation/119-hr-3514)
- [119-hr-1301: Death Tax Repeal Act](https://policyrisk.com/legislation/119-hr-1301)
- [119-hr-703: Main Street Tax Certainty Act](https://policyrisk.com/legislation/119-hr-703)
- [119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1628)
- [119-hr-987: Fair Access to Banking Act](https://policyrisk.com/legislation/119-hr-987)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-5463 (as of 2026-07-22).