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HB 343

Income tax; authorize credit for certain employers providing individual coverage health reimbursement arrangement (ICHRA) to employees.

2026 Regular Session Introduced by Trey Lamar

Mississippi allows employers a state income tax credit for reimbursing employees' individual health insurance premiums and medical expenses through ICHRAs.

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Bill Summary · HB 343

Legislative bill overview

HB 343 authorizes Mississippi employers to claim an income tax credit for providing Individual Coverage Health Reimbursement Arrangements (ICHRAs) to their employees. An ICHRA is a tax-advantaged arrangement where employers reimburse employees for health insurance premiums and qualified medical expenses. The bill incentivizes this alternative to traditional group health plans by allowing employers to reduce their state income tax liability.

Why is this important

This bill affects how Mississippi employers structure health benefits and potentially impacts state tax revenue. It gives employers a financial incentive to shift from conventional group health insurance to individual market coverage with employer reimbursements, which could reduce overall healthcare costs for some businesses while changing the risk pool dynamics in Mississippi's insurance markets. The tax credit also influences employee benefits and take-home pay structures across the state.

Potential points of contention

  • Tax revenue impact: The state loses income tax revenue through these credits, requiring budget adjustments or affecting education/services funding
  • Healthcare market effects: Moving employees to individual plans rather than group plans could destabilize group insurance markets and potentially raise premiums for remaining group plan participants
  • Equity concerns: Benefits may disproportionately favor larger employers able to afford reimbursement arrangements over smaller businesses, and higher-wage employees over lower-wage workers

Compiled from official sources — confirm details with the bill’s official record.

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