03/12/2008
Testimony Before the Ohio House Healthcare Access And Affordability Committee, Rep. Jim Raussen, Chairman
Mr. Chairman and members of the House Healthcare Access and Affordability Committee, my name is Jeff Davis and I am the owner of Scioto Landscaping Company based out of Columbus, Ohio, and a member of the NFIB/Ohio. I am here today to testify in support specifically to the component of House Bill 456 that provides a $1,000 tax credit to incentivize individuals without the option of employer-subsidized health insurance to purchase health insurance coverage. I want to thank you for the opportunity to appear before this committee today and your work on a very serious issue for small business, the cost of health insurance.
I started Scioto Landscaping in 1985 with a desire to be my own boss and to provide the Columbus area with high-quality landscaping services. We provide a full-service landscaping experience from design to installation and building as well as maintenance for many of our client with a focus on customer service and satisfaction. I employ five full-time employees and add an additional 20 employees during peak season.
Like many other small employers, the cost of health insurance is a major concern for Scioto Landscaping. Unfortunately the high premiums make it prohibitive for my company to provide employees with an employer-sponsored plan. However, we pay higher wages to employees and encourage them to purchase individual coverage. In regard to my personal coverage, I had purchased traditional plan for many years but was facing annual premium increases between 16 percent and 20 percent for the past several years. More recently I purchased a health savings account plan, commonly referred to as an HSA. While the HSA initially offered some premium savings, I have come to find that yearly premium increases are now rivaling traditional health insurance plans. As the sole health insurance provider for my family, I can tell you that rising health insurance costs are a continuous concern. Those costs, coupled with rising workers' compensation premiums and an increased minimum wage are really hurting the business' bottom line.
I am here today as a member of the NFIB and as a small business owner to speak in support of the concept of providing tax credits to individuals as a means of incentivizing individuals to purchase health insurance. While a $1,000 tax credit might not sound like a lot of money when your monthly premiums are upwards of $1,200, I can tell you that this is a step in the right direction. As Ohio and the country struggle with how to solve the problem of the uninsured, I applaud the sponsor and chair, Rep. Jim Raussen, for supporting the self-employed small business owners that significantly contribute to Ohio's economy.
Mr. Chairman and members of the committee, I appreciate the opportunity to be here and testify in support of the tax credit. I would like to leave you with a thought. As you continue to debate the issue of healthcare access, I ask you that you continue to focus on innovative approaches like this tax credit to help deal with the issue of cost. Thank you for your time and consideration. I would be happy to answer questions you have at this time.
