State Senator Dave Syverson is co-sponsoring legislation to make employee health coverage more affordable for small businesses by creating a new tax credit for employers that offer Health Reimbursement Arrangements (HRAs).

Senate Bill 3619, filed by Senator Chris Balkema, is an initiative of the Small Business Advocacy Council. The legislation would establish a tax credit for small businesses that choose to provide HRAs. An HRA is a tool that can help employers reimburse employees for qualified health care expenses and, in some cases, individual health insurance premiums. Supporters say the measure would give small employers another flexible, cost-effective option to offer benefits and stay competitive when trying to attract and retain workers.

While HRAs may not be the right fit for every business, Senate Republicans say expanding access to benefit options is critical for job creators facing rising costs. SB 3619 is designed to ease the financial burden of providing health benefits and ensure small businesses have more tools to compete, grow, and support their employees.

Senate Bill 3619 was assigned to the Senate Revenue Committee on Tuesday.