The bill introduces a nonrefundable income tax credit for small employers who provide their employees with individual coverage health reimbursement arrangements (ICHRAs). Employers can claim a credit of four hundred dollars for each employee receiving benefits under such an arrangement, provided they contribute at least the same amount during the taxable year. The bill also includes a new section, 5747.87 of the Revised Code, which outlines the specifics of this tax credit, and it allows pass-through entities to claim their proportionate share. Additionally, the tax commissioner is authorized to request supporting information from taxpayers claiming this credit, which must be provided for the credit to be granted.

In conjunction with the tax credit, the bill aims to enhance fairness in the insurance market by prohibiting practices that steer individuals away from employer-provided health plans and by clarifying the treatment of domestic violence victims in insurance underwriting. It specifies that insurers may consider a person's physical or mental condition related to domestic violence, provided they apply the same standards to all individuals. The bill also repeals several existing sections of the Revised Code, indicating a significant update to the regulatory framework surrounding health reimbursement arrangements and insurance practices. Overall, the legislation seeks to improve employee benefits and access to healthcare while ensuring fair treatment in the insurance market.

Statutes affected:
As Introduced: 5747.98
As Reported By House Committee: 3901.21, 3901.22, 3937.19, 5747.98
As Passed By House: 3901.21, 3901.22, 3937.19, 5747.98