Individual Coverage Health Reimbursement Arrangements (ICHRAs) – Empowering Employees, Supporting Small Business, and Preventing Unfair Practices of Insurance
As an agency owner, you know the importance of making sure that your staff has access to quality and affordable health insurance. Individual Coverage Health Reimbursement Arrangements (ICHRAs) offer a new approach to providing health coverage to your employees. These plans offer an arrangement where employers can reimburse employees for health insurance premiums, co-pays, and other out-of-pocket expenses. We will discuss exciting legislation in the Ohio legislature that would provide small business owners with an income tax credit for offering ICHRAs and would expand the definition of unfair and deceptive practices of insurance to provide important consumer protection.
House Bill 133, introduced by State Representative Meredith Craig, aims to support small business owners with two to fifty employees who utilize ICHRAs. Employers who provide ICHRAs to some or all their employees and contribute a minimum of $400 per employee annually would qualify for a $400 nonrefundable income tax credit for each participating employee. It is important to note, the bill expressly mentions the ability of owners of pass-through entities to claim the owner’s proportionate share of the credit.
Aside from the financial incentives, House Bill 133 expands the definition of unfair and deceptive practices of insurance to protect consumers. This bill takes a strong stand against the unethical practice of steering individuals from existing employer-provided health coverage toward individual health benefit plans based on health-related factors. It protects employees from being shifted into plans that may not meet their needs simply because they may be expensive to cover.
House Bill 133 also prohibits offering employers financial incentives to not enroll in, or to an employer-provided health benefit plan, including by offering individuals an alternative to leave that plan. The bill does make it clear that informing employers about ICHRAs or the related tax credits would not count as a deceptive act of insurance.
House Bill 133 is moving forward quickly through the legislative process. The bill was voted out of the House Insurance Committee unanimously and received a 93-0 vote on June 4th in the Ohio House. The bill has been referred to the Senate Ways and Means Committee and will be taken up for future hearings and deliberations.
OIA believes that House Bill 133 would offer a true benefit to agency owners interested in offering ICHRAs and would create proper guardrails to protect against steering individuals away from an employer-provided health benefit plan. Our Advocacy team was proud to provide written proponent testimony for the legislation in the House Insurance Committee and looks forward to supporting HB 133 as it moves forward in the legislative process.
Please reach out to George Christy at George@ohioinsuranceagents.com if you’d like to provide your support for House Bill 133. If you’d like to keep informed of the bill’s status, you can track its progress on the Ohio Legislature’s website.
About the Author:
George Christy joined the Ohio Insurance Agents (OIA) as the new Government Affairs Manager, starting on January 6, 2025. George brings experience from his previous roles at the Ohio Department of Transportation (ODOT). At ODOT, he was part of the communications team, and he worked on legislative and regulatory issues with the Legislative Affairs team. George brings experience from his work on state legislative campaigns, his time as a Legislative Aide in the Ohio House of Representatives, and his roles at a state agency. George grew up in Delaware County and is a graduate of The Ohio State University where he studied Political Science and Economics.
