Issue at Hand - April/May 2007

Sensible Solutions

NFIB supports market-based reforms that rely more on the power of consumers than the government. Here's a look at some of the reforms NFIB supports.

Tax-Based Health-Insurance Incentives

• To encourage participation, a standard tax deduction would be available to all individuals (employers, employees, non-employees) who purchase health insurance, regardless of whether they receive benefits through their employers or purchase coverage on their own.
• The federal government could offer refundable tax credits to assist with the cost of coverage.
• Additional tax incentives (on top of the current business deduction) could be available for employers who provide health insurance.

Small-Business Health Plans and Market-Based Pooling Arrangements

• Legislation creating Small-Business Health Plans would allow business owners to join together through membership in trade associations to purchase health insurance at bulk rates. To learn more about NFIB's work on SBHPs, go to www.NFIB.com/healthcare.
• Market-based pooling arrangements are one way to achieve lower administrative costs, larger purchasing clout and consistent benefit packages across state lines. This will lead to more affordability and choices in the purchase of health insurance for you and your employees.

Savings Accounts for Health-Care Spending

• Health savings accounts are pre-tax medical savings accounts paired with high-deductible health insurance that allow individuals to save for future medical expenses. Just recently, NFIB-supported changes to HSA legislation were signed into law that make it even easier (and more affordable) for business owners and employees to take advantage of these accounts. To learn if an HSA is right for you, visit www.NFIB.com/healthbenefits.
• Health reimbursement arrangements and cafeteria plans are also aimed at helping you and your employees pay for health-care expenses. These plans provide consumers with the ability to control and spend health-care dollars as they see fit. To learn more about these kinds of health saving tools, visit www.NFIB.com/page/HealthSavingsAccounts.

Relief From Health-Insurance Mandates

• While mandates make health insurance more comprehensive, they also make it more expensive. NFIB wants small business to have affordable benefit packages that can be tailored to their workforce needs.

Medical-Liability Reform

• Medical-liability reform will inject more fairness into the legal system and reduce unnecessary litigation and legal costs, while protecting the rights of those with legitimate claims. Reforming our liability laws should lower overall health-care costs for all.

Transparency in Your Health-Care Costs

• To spend your health-care dollars wisely, you need to know your options, have access to information about the quality of doctors and hospitals in your area, and know how much your health-care procedures will cost. Transparency in health-care costs is powerful information that consumers must have to make good decisions.