Rep. Van Duyne Introduces Legislation to Ensure the Small Business Administration (SBA) Works Proactively to Promote Important Employee Health Care Options

Washington, D.C. - Today, U.S. Representatives Beth Van Duyne (R-TX-24), Claudia Tenney (R-NY-24), and Kevin Hern (R-OK-01) introduced the Small Business Health Options Awareness Act of 2025to require the SBA to provide more outreach and information about the availability of Individual Coverage Health Reimbursement Arrangements (ICHRAs) as a means for small businesses to deliver health care coverage for their employees. ICHRAs were authorized in 2019 as a flexible, tax-advantaged way for employers to help employees pay for individual health coverage, but low awareness of this option has prevented more widespread utilization.

ICHRAs were created under regulations issued by the Trump administration in 2019, and became available as of 2020. Through ICHRAs, employers of any size can reimburse employees for some or all of the premiums the employees pay for health insurance they purchase on their own.

"Small businesses are the lifeblood of job creation in America and their employees are vital to rebuilding a stronger, more expansive economy for our nation. By providing more information to small businesses and driving adoption of Individual Coverage Health Reimbursement Arrangements, we can help small businesses better serve the health care needs of their workers as well as become more attractive as an employment option," said Rep. Van Duyne. "ICHRAs are an innovative way for employers to have more affordable and flexible health coverage for their employees, but we need SBA assistance to help raise awareness among already time constrained and overburdened small business owners."

"Small businesses are the backbone of our communities, yet many owners lack clear information about affordable health coverage options," said Rep. Tenney. "Individual Coverage Health Reimbursement Arrangements give employers flexibility to help workers secure quality coverage. This legislation directs the SBA to actively share these options so entrepreneurs can grow, compete, and support their employees."

"ICHRA's are a highly beneficial, tax-advantageous option for small businesses to offer their employees comprehensive healthcare coverage," said Rep. Hern. "Knowing what it's like to be a small business owner, I have been a supporter of these plans since their inception. I am happy to cosponsor this piece of legislation, which gives small business owners the direction and information they need to offer health benefits to their hard-working, well-deserving employees."

"ICHRA is the next step of innovation in American healthcare. Today, employer health benefit costs are spiraling out of control - making it difficult for employers to offer affordable care. ICHRA is a win for employers, who can fund great health benefits at lower costs without the administrative hassle, and it's a win for employees who will have access to more plan choices that fit their individualized needs," said Mark Bertolini, CEO of Oscar Health.

"The 'Small Business Health Options Awareness Act of 2025' will provide America's 34 million-plus small employers with valuable education on affordable options for full coverage health insurance. Sustainable employee benefits are a crucial component for recruiting and retaining working Americans, and the HRA Council applauds Rep. Van Duyne's commonsense directive to disseminate education about Individual Coverage Health Reimbursement Arrangements through the various offices and publications of the Small Business Administration," said Eugene Sayan, Board Chair for the HRA Council.

"CHOICE arrangements open an entirely new range of options for employees and the potential for much greater satisfaction with their selection as their life needs evolve. We are fully supportive of Rep. Van Duyne's legislation to disseminate information about these policies," said Kate Sullivan, VP Government Affairs, eHealth.

"Thatch fully endorses and applauds the Small Business Health Options Awareness Act and Rep. Van Duyne's efforts to expand affordable and flexible health benefits options for small businesses,"said Chris Ellis, CEO, Thatch.

Summary:

The bill requires the SBA to actively disseminate information developed by the U.S. Department of Treasury, U.S. Department of Health and Human Services, U.S. Department of Labor, and other federal agencies about ICHRAs. This outreach must occur via Small Business Development Centers, SBA district offices, and standard SBA communication tools (press releases, social media, website postings). The goal is to make sure small businesses are aware of and understand ICHRAs are a flexible, tax-advantaged way for employers to help employees pay for individual health coverage.

Click HEREfor bill text.

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