HB 133 Returns: A Game Changer for Ohio Employers & Benefits Strategy
Ohio House Bill 133 is once again on the table, and it proposes a nonrefundable income tax credit for small employers (2–50 employees) that adopt Individual Coverage Health Reimbursement Arrangements (ICHRAs). The bill sailed through the House unanimously in June 2025.
What It Means
If passed, HB 133 would allow qualifying employers to claim $400 per employee reimbursed via ICHRA, provided they contribute at least $400 annually.
This makes the ICHRA model dramatically more attractive for small employers in Ohio, turning what was often a “cost-shift risk,” into a tax-savvy benefit strategy. In a state where healthcare costs remain a significant business burden, and where a strong ACA marketplace with robust competition helps contain premiums, this approach could lower the effective cost of offering coverage, reduce risk, and promote healthier labor markets.
But passing the bill is only half the battle. Employers will need to ensure compliance, manage plan design, and stay aligned with reporting and ACA obligations. That’s where the risk lies, and where Decisely steps in.
How ORHA’s Health and Benefits Partner, Decisely, Can Help Ohio Employers Maximize HB 133
- Expert Plan Design & Eligibility Alignment
Decisely can help Ohio employers design ICHRA contributions that meet the $400 minimum while balancing budget and employee benefit goals. We review benefit tiers, eligibility, and contribution strategies to maximize credit utilization without overspending. - Audit-Ready Compliance & Reporting
To claim the tax credit, employers must document contributions, maintain proof of purchase, and stay compliant with ACA and Ohio rules. Decisely’s platform provides built-in audit trails, documentation, and compliance automation so you don’t risk disqualification. - Integrated Platform with Payroll & Benefits
Seamless connection between ICHRA, payroll contributions, and tax claim processes helps reduce manual errors and gaps. Decisely’s tech stack integrates data across benefits and reporting, making it simple to claim HB 133. - Guidance on Tax Strategy & Optimization
We support your team in applying the credit correctly and aligning the tax impact with your broader financial planning. This includes working with your tax advisors, adjusting credit projections by headcount changes, and capturing full value. - Change Management & Employee Communication
Introducing ICHRA under HB 133 requires clear employee communication. Decisely offers education, training materials, and member support to minimize confusion and maximize adoption.
Why This Matters Now
Many small employers, especially in industries with tight margins, have avoided offering health benefits due to cost uncertainty. HB 133 shifts the equation, effectively reducing downside risk and making it feasible. When paired with a scalable, audit-ready platform, employers can embrace a benefits model that enhances attraction, retention, and compliance, while keeping costs under control.
In short: Ohio’s return to HB 133 signals a new era for small employer benefits. But the winners won’t just be those who get legislative approval — they’ll be the ones who operationalize it cleanly, compliantly, and confidently. With Decisely as your partner, that’s exactly what you can do.
To learn more about ICHRA and other benefits options, visit the ORHA Benefits Center.
