We have received text from H.R. 5463: Choice Arrangement. This bill was received on 2025-09-18, and currently has 2 cosponsors.
Here is a short summary of the bill:
This bill, titled the Choice Arrangement Act of 2025, proposes amendments to the Internal Revenue Code regarding employer-provided health reimbursement arrangements (HRAs) that are integrated with individual health insurance coverage. The key points of the bill include:
Integration of Health Reimbursement Arrangements
The bill allows health reimbursement arrangements to be considered compliant with various provisions of the Public Health Service Act if they meet specific criteria. These criteria include:
- The HRA must be funded solely by employer contributions and provide reimbursements for medical care during periods when the employee is covered under individual health insurance or Medicare.
- The HRA must adhere to nondiscrimination requirements, ensuring that all employees within a specified class (e.g., full-time, part-time) are offered the arrangement on the same terms.
- Employers can vary reimbursement amounts based on dependents covered or the age of the employee, with caps on total reimbursements related to age.
Substantiation and Notice Requirements
The bill establishes new substantiation requirements for HRAs. Employers must provide written notice to eligible employees about their rights and obligations regarding the arrangement at least 60 days before the plan year begins. This notice must be clear and comprehensible to the average employee.
Choice Arrangement Credit for Employers
The legislation introduces a tax credit for employers who establish a qualified CHOICE arrangement. The credit is calculated based on the number of months an employee is enrolled in the HRA, with specific amounts allocated for the first and second years of enrollment. Employers eligible for this credit are those who are not classified as "applicable large employers" under existing tax laws.
Tax Treatment and Reporting Requirements
The bill modifies existing tax code sections to include the total amount of benefits from qualified HRAs on employees' W-2 forms, ensuring that these amounts are clearly reported for tax purposes.
Effective Date
The amendments outlined in the bill are set to apply to plan years that begin after December 31, 2025.
Participants' Eligibility for Exchange Insurance
Additionally, the bill states that employees participating in these CHOICE arrangements may still be eligible to purchase insurance through the exchange without penalty, provided their employer offers a compliant arrangement.
Relevant Companies
- AET - Aetna, a major health insurance provider, could see changes in demand for its individual health insurance products as a result of this bill.
- UNH - UnitedHealth Group, a major player in health insurance and managed care, may also be influenced by the new HRA provisions and changes to employer health plans.
- ANTM - Anthem Inc., which offers various health insurance products, could be impacted by the integration of HRAs with individual insurance coverage.
Representative Kevin Hern Bill Proposals
Here are some bills which have recently been proposed by Representative Kevin Hern:
- H.R.5463: Choice Arrangement
- H.R.5267: American Franchise Act
- H.R.5142: Home Health Stabilization Act of 2025
- H.R.3512: Tackling Predatory Litigation Funding Act
- H.R.3288: Access to Prescription Digital Therapeutics Act of 2025
- H.R.2436: To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.
You can track bills proposed by Representative Kevin Hern on Quiver Quantitative's politician page for Hern.
Representative Kevin Hern Net Worth
Quiver Quantitative estimates that Representative Kevin Hern is worth $108.4M, as of October 2nd, 2025. This is the 15th highest net worth in Congress, per our live estimates.
Hern has approximately $25.9M invested in publicly traded assets which Quiver is able to track live.
You can track Representative Kevin Hern's net worth on Quiver Quantitative's politician page for Hern.
Representative Kevin Hern Stock Trading
We have data on up to $107.4M of trades from Representative Kevin Hern, which we parsed from STOCK Act filings. Some of the largest trades include:
- A February 1st, 2023 sale of up to $5M of $PXD. The stock has risen 20.39% since then.
- A January 4th, 2023 sale of up to $5M of $MSFT. The stock has risen 126.85% since then.
- A July 30th, 2021 purchase of up to $1M of $SPY. The stock has risen 52.44% since then.
- A June 25th, 2021 purchase of up to $500K of $JNJ. The stock has risen 13.3% since then.
- A June 25th, 2021 purchase of up to $500K of $JPM. The stock has risen 101.69% since then.
You can track Representative Kevin Hern's stock trading on Quiver Quantitative's politician page for Hern.
This article is not financial advice. See Quiver Quantitative's disclaimers for more information.
