01/30/2008
CONTACT: Jim Brown, 615-337-5507
Nearly 90 Percent of NFIB/Tennessee Members Support Two Proposals
NASHVILLE, Tenn. -- The National Federation of Independent Business, Tennessee's leading small business association, today said it supports the establishment of tax credits for small business owners who offer health insurance to their employees and dependents. NFIB also will support the establishment of small-group health cooperatives that allow small businesses and their employees to pool in order to reduce the risk of losing their health insurance.
Specifically, NFIB backs a bipartisan bill (SB 2659/HB 3100) that would establish a $400 per employee tax credit for small employers with 25 employees or fewer that offer health insurance to employees making $40,000 or less. Qualifying employers also must pay at least 50 percent of the premiums for their employees and their dependents. The bill is sponsored by Sens. Diane Black (R-Gallatin) and Roy Herron (D-Dresden) and Reps. Charles Curtiss (D-Sparta) and Charles Sargent (R-Franklin). Eighty-nine percent of NFIB/Tennessee member respondents support the proposal, according to the most recent NFIB Member Ballot.
"Clearly, the smaller your business is, the more problematic it is to offer health insurance," said NFIB/Tennessee State Director Jim Brown, noting small businesses employ half of all Tennessee workers and comprise 97 percent of all firms in Tennessee. "Tax credits for small business will help more entrepreneurs cover their employees, while stimulating start-up businesses to offer health insurance. Our shared goal is to help small businesses with today's health insurance crisis, so they can compete for talented workers and preserve free enterprise in Tennessee."
Fifteen years ago, Brown noted 70 percent of NFIB/Tennessee members offered health insurance, but today only 45 percent do. He said NFIB is engaging the General Assembly and Gov. Phil Bredesen's administration to do everything possible in Tennessee to help small business while Washington debates a national healthcare fix.
NFIB expects a second bipartisan bill to be filed soon that would establish small-group health cooperatives in Tennessee. Eighty-nine percent of NFIB/Tennessee member respondents also support this proposal. Brown noted NFIB doesn't expect health insurance rates will plummet from such a measure, but small business owners and their employees most definitely would see more predictability in rate increases, which would address the drop-off of covered lives in Tennessee.
In other results from the NFIB/Tennessee Member Ballot, 16 percent of respondents said they have seen an overall decrease in workers' compensation premiums since reforms were adopted three years ago, while 54 percent have not. Brown noted, however, that anecdotal feedback from members across the state indicates the reforms have worked to stabilize the state's workers' comp market. The state also has data showing businesses have saved nearly $270 million on their premiums since 2004. NFIB plans to conduct a comprehensive workers' comp survey in the future.
