Sponsor says tax credit for small employers offering ICRAs could reduce Ohio’s uninsured rate

Representative Craig presented sponsor testimony on Substitute House Bill 133, which would create a nonrefundable Ohio tax credit for small employers that offer an Individual Coverage Health Reimbursement Arrangement (ICRA) and contribute at least $400 per employee in a taxable year.

Craig told the committee that ICRAs were introduced at the federal level in 2019 to provide a pretax fixed benefit employers can use to help employees purchase individual marketplace coverage. Under the bill’s criteria described in testimony, eligible employers would employ between 2 and 50 people, offer ICRAs to some or all employees, and contribute at least $400 per employee; the proposed credit equals $400 per employee covered by the ICRA. Craig said the policy is aimed at helping small employers manage rising premiums and assisting Ohioans who are uninsured; he cited an Ohio uninsured population figure of about 697,000 (roughly 6 percent of the state population) as context for the bill.

Craig also referenced parallel federal bills and recent state actions elsewhere that support wider adoption of ICRAs and said the state credit could help small businesses facing steep premium increases next year. The committee took no vote at the first hearing and sponsors offered to answer questions in follow up.

Ending: The committee closed the first hearing on HB133 after sponsor testimony; no committee action was recorded.