The National Council of Insurance Legislators (NCOIL) has created a model bill for states to offer state income tax credits to employers sponsoring individual coverage health reimbursement arrangements (ICHRA). The model bill establishes a tax credit for businesses that employ between 2 and 50 employees and offer an ICHRA. NCOIL is a group for state senators, representatives, and other lawmakers who are interested in insurance-related issues.
Currently, only Indiana provides an ICHRA tax credit, which has been in place since 2023. However, Georgia is considering a similar bill, and an Ohio state representative is sponsoring an ICHRA tax credit bill there. As a result, more states could soon offer the tax credit as an incentive to employers providing these plans. Two health insurers, Centene and Oscar Health, spoke in favor of the model bill at a recent NCOIL meeting.
Under an ICHRA plan, employees can use employer-provided cash to purchase individual or family major medical coverage. Employers could utilize an ICHRA plan, or so-called “cash for coverage” plan, in place of traditional group health coverage.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. 9We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
