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Allowing insurers to sell mandate-lite healthcare plans might allow more small businesses to provide employer-based insurance for their employees. Alaska places 28 healthcare requirements (mandates) on the basic plans of insurers, before they can legally sell them. It estimates 15 percent to 35 percent of premiums can be attributed to these mandated benefits.
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Legislation in the Senate would require all Alaskans to be covered by health insurance. Employers will be required to provide at least a mandated set of benefits, covering a minimum of 25% of employees and paying at least 33% of the premium. Employers who do not meet the requirements would be taxed a percentage of their gross payroll. The Alaska Health Care Board would be established to set approved benefits, deductibles and co-pay levels.
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Senate Bill 86 that would require most employers to provide a minimum of one week of what is called sick leave, but looks more like a family leave program. This legislation would require small businesses that employ 15 or more workers to provide each employee with one hour for every 40 hours worked – about 6.2 days a year. Unused time must be carried forward.
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Proposals to increase the minimum wage died in committee during the Twenty-Fifth Legislature. The federal minimum wage will exceed Alaska’s minimum wage on July 24, 2009 when the federal level will increase to $7.25 per hour. However, numerous proposals to increase the minimum wage, one to as high as $9.45 an hour, are expected to resurface when the Alaska Legislature meets again.
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Currently, local governments may exempt up to $20,000 of residential property value from taxation. Five proposals have been introduced to increase the permissive residential property tax exemption.