Members of the Trump administration, including Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, visited Cleveland on Friday to promote healthcare choice arrangements — a structure they say gives employers and workers more flexibility and options when selecting health insurance.
The day began with a roundtable of small business owners and insurance companies discussing choice arrangements, previously known as Individual Coverage Health Reimbursement Arrangements, which have been available since 2020.
"Unfortunately, many employees, especially small businesses, do not know this option exists. That ends today in Ohio," Oz said.
Choice arrangements let employers provide tax-free reimbursements — essentially a monthly allowance — to help workers buy their own health insurance on the marketplace, instead of offering a traditional group plan.
Oz and Small Business Administration leaders argue the arrangements could help get more uninsured workers covered.
"So what we're finding is that this opens up the opportunity for again those small businesses who've never offered anything before to compete with the larger employers who have all the benefits and bells and whistles," Bill Briggs, Deputy Administrator for the Small Business Administration, said.
Critics say these arrangements could leave workers paying more out of pocket and affect their eligibility for ACA marketplace subsidies.
"We're asking you to make the most out of this common sense option. You don't have to pick it, but you need to know about it," Oz said.
When I asked about affordability — and whether choice arrangements would drive down the cost of health insurance for Americans — Oz made the case they would.
"It will drive down the cost of healthcare for probably three quarters of Americans working in smaller businesses. I'll tell ya. It's so attractive the insurance companies themselves are putting their employees on these choice accounts," Oz said.
Oz also pointed to the range of plan options available under the arrangements.
“Here’s the good part — instead of having a choice of two or three, you can have, in this area, 202. Take as many choices as you want. Look around and see: What do you need?” Oz said.
More information on choice arrangements is available at HealthCare.gov.
Damon Maloney is a Cuyahoga County and We Follow Through anchor at News 5 Cleveland. Follow him on X @DMaloneyTV, on Facebook DamonMaloneyTV or email him at Damon.Maloney@wews.com.
