Committee hears support for tax credit to expand small‑employer health options (ICRAs)

House Bill 133, proposing a nonrefundable tax credit for small employers that offer individual coverage health reimbursement arrangements (ICRAs), drew multiple proponent witnesses at the House Ways and Means Committee second hearing.

Kathy Grayson of Oscar Health described the model and the bill’s goals, telling lawmakers the bill would "create the opportunity for this product to be discussed more widely" and citing data from her written testimony that only 23% of Ohio businesses with fewer than 10 employees offer insurance today. Grayson outlined how ICRAs allow employers to provide a defined contribution that employees can use to purchase plans on the individual market and said the bill would cover employers with two to 50 employees as written.

Cameron Garsick of the National Federation of Independent Business in Ohio said the proposed tax credit would be available to businesses that "contribute at least $400 per year to a covered employee's account," and framed the measure as a tool to help small firms provide benefits they otherwise cannot afford. Marshall Darr, CEO and cofounder of Stretch Dollar, and Frank Spinelli of EZICRA described platform experience, client examples and said ICRAs can be implemented quickly by small employers.

Committee members asked for details about pilot approaches, definitions of small businesses and likely effects on Medicaid enrollment and uninsured rates. Grayson said the bill targets firms with "2 to 50 employees" and pointed to Indiana’s 2023 pilot as precedent; she added the state-level data are only now becoming available. Representative Troy asked whether the program could reduce the number of people on Medicaid expansion; Grayson said it could reduce the uninsured rate and that many employers adopting ICRAs nationally were offering coverage for the first time.

Witnesses emphasized choice for employees, cost predictability for employers, and examples of workers who benefited after shifting to individual-market coverage through an employer-funded account. No vote was taken; committee members noted written testimony filed with the committee and concluded the hearing.