04/ 02/ 2008
This year, as the nation prepares for the upcoming presidential election, Congress is keeping a close watch on how the presidential races will shape the healthcare policy debate. NFIB is also watching for how legislation might affect small business. Three specific bills that could influence access and affordability of healthcare costs deserve closer examination.
The Equity for Our Nation's Self-Employed Act of 2007 (H.R. 3660/S. 2239)
Under current law, corporations may deduct health insurance premiums as a business expense and forgo payroll (FICA) taxes on these costs. This legislation would correct the tax code, and at the same time, would increase health insurance affordability for our nation's self-employed entrepreneurs. It would ensure that self-employed workers will be able to deduct any healthcare costs from their self-employed taxes, reducing their tax burden by more than 15 percent. As small businesses continue to bear a disproportionately large burden of increasing healthcare costs, leveling the playing field on taxes is an excellent first step to help them purchase health benefits with pre-tax dollars.
The Fair and Speedy Treatment (FAST) of Medicare Prescription Drug Claims Act (H.R. 1474) and the Pharmacy Access Improvement (PhAIm) Act (S. 1954)
These bills take significant steps toward addressing the crippling effect that delayed payment practices in the Medicare Part D prescription drug program have on our community pharmacies. Payment irregularities threaten the viability of independent pharmacies across the country—particularly in urban and rural communities where alternative sources for Medicare beneficiaries may be limited. By requiring that claims be paid within 30 days, prompt-pay legislation will provide the certainty necessary for pharmacists to meet their business obligations.
Health IT: The Promotion of Health Information Technology Act (H.R. 3800) and The Wired for Health Care Quality Act (S. 1693)
Health IT can save lives and money by reducing medical errors and lowering administrative costs while dramatically improving the overall quality, cost and delivery of healthcare. The Rand Corporation has estimated that widespread, effective use of healthcare information technology could save the United States at least $81 billion in overall healthcare costs. In the small business community, where firms pay an average of 18 percent more than their larger counterparts in health insurance premiums, the potential savings associated with health IT make it an attractive tool for advancing access to quality healthcare. These two health IT bills would accelerate the adoption of health information technology and increase the efficiency and effectiveness of the U.S. healthcare system.
This article is from the April/May 2008 issue of MyBusiness.
