Assuming the named range refers to Range A1 in Sheet1, this code need to sit in the Sheet1's code Module, easiest way to get there is to right click in the name tab in the bottom and click view code.
Private Sub Worksheet_Change(ByVal Target As Range)
Dim MyRange As Range
Dim TargetRange As Range
Set MyRange = Me.Range("ReductionType")
Set TargetRange = Sheet2.Range("G:H")
If MyRange.Value = "One Time" Then
TargetRange.EntireColumn.Hidden = True
Else
TargetRange.EntireColumn.Hidden = False
End If
End Sub