Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Health Policy topic
No spam. Unsubscribe anytime.
Committee hears proponents of tax credit to encourage individual HRA use by small employers
Summary
At a second hearing on House Bill 133, health insurers, small‑business advocates and vendors urged lawmakers to create a nonrefundable tax credit to encourage small employers to offer Individual Coverage Health Reimbursement Arrangements (ICRAs), citing employer affordability and expanded employee choice.
The Ohio House Ways and Means Committee held a second hearing on House Bill 133, which would create a nonrefundable tax credit for small employers that offer individual coverage Health Reimbursement Arrangements (ICRAs). Supporters including Kathy Grayson of Oscar Health, Cameron Garsick of the National Federation of Independent Business (NFIB), and several vendors and brokers testified in favor.
Kathy Grayson of Oscar Health described ICRAs as a defined‑contribution approach in which an employer pays a set amount for employees to buy individual market coverage. “By putting in place a tax credit for employers that offer this product, this body would be creating the opportunity for this product to be discussed more widely,” Grayson told the committee. She said the bill’s draft limits eligibility to employers with two to 50 employees and that Indiana enacted a similar law in 2023.
Nut graf: Supporters argued the credit would make it easier and more affordable for small employers to offer health benefits, expand access for employees who otherwise lack employer coverage and provide greater plan choice in the individual market.
Cameron Garsick of NFIB said the credit would cover up to $400 per covered employee and noted that small‑employer offer rates are far lower than for larger employers; Grayson cited that only 23 percent of Ohio businesses with fewer than 10 employees now provide insurance, and 48 percent of businesses with 10–24 employees provide coverage, figures she drew from her written testimony. Vendor witnesses from Stretch Dollar and EZICRA described employer and employee experiences, saying ICRAs can be implemented quickly and that employers sometimes face steep small‑group premium increases.
Committee members asked about program design and likely effects. Representative Hall asked what a phase two or expansion might look like; Grayson said the Indiana model gives precedent and that the state may adjust the credit size based on data. Representative Troy asked whether ICRA uptake could reduce the uninsured rate and affect Medicaid enrollment; Grayson said the option may attract people currently uninsured and could reduce state costs if workers move from Medicaid to employer‑sponsored coverage.
Ending: The committee recorded multiple written testimonies and concluded the second hearing on House Bill 133; no vote occurred during the hearing.
