06/11/2008
Legislation introduced in the House seeks to improve small business healthcare
|
|
|
NFIB President Todd Stottlemyer (left) with U.S. Rep. Ron Kind, one of the sponsors of the House's SHOP Act. |
|
|
|
NFIB President Todd Stottlemyer (center) with Rep. Kind (left) and Rep. Barrow (right). |
Yesterday, NFIB joined eight congressmen for the introduction of the House-version of the Small Business Health Options Program Act (SHOP). The bill seeks to improve access to affordable healthcare for small business through insurance market reform and tax incentives.
Introduced by the Senate earlier this year, the legislation is targeted specifically for small businesses with 100 employees or fewer. SHOP seeks to lower costs and provides a simpler way to shop for and expand the choice of health insurance policies.
Key Provisions of the SHOP Act include:
- Small business owners could join a state purchasing pool for health insurance.
- Participants will receive tax credits as an incentive.
- A nationwide purchasing pool will be offered beginning in 2011.
Tax credit details
Small business owners who pay at least 60 percent of the premium will receive a tax credit of up to $1,000 for each covered employee ($2,000 for family coverage). The full credit will be available to employers with 10 or fewer employees, and it will be phased down as the size of the employer increases—up to 50 employees maximum. Employers who pay more than 60 percent of the premium will receive a bonus credit. Self-employed individuals will receive a tax credit of $1,800, or $3,600 for family coverage.
Healthcare is the No. 1 issue for small business
Of the estimated 47 million uninsured Americans, more than 28 million are small business owners, employees and dependents. They shoulder the disproportionate burden of a broken healthcare system, and they have seen their healthcare premiums skyrocket 129 percent over the last eight years.
The critical nature of this problem was reaffirmed this week in NFIB’s report, Problems and Priorities. For more than 20 years, the cost of health insurance has remained the No. 1 problem facing small business. NFIB has been fighting for healthcare reform that recognizes the unique problems faced by small businesses, many of which don't enjoy the same tax breaks, coverage or pooling options as large businesses or corporations. As a result, small business owners pay on average 18 percent more for the same healthcare benefits as the largest employers.
For more information on the SHOP Act introduced in the House, review NFIB's talking points on the legislation.
Bill sponsors: Reps. Ron Kind (Wis.), Phil English (Pa.), John Barrow (Ga.), C.W. Bill Young (Fla.), Russ Carnahan (Mo.), Jo Ann Emerson (Mo.), Tom Allen (Maine), Jim Gerlach (Pa.), Jason Altmire (Pa.), Chris Shays (Conn.), Joe Courtney (Conn.) and Jim Ramstad (Minn.).
