Massachusetts Congressional Democrats Propose More Small Business Health Insurance Help
Comprehensive healthcare reform has been law for the fast two months, with a reconciliation package following it soon after.
The legislation includes provisions that provide tax credits to small businesses that partially subsidize the cost of health insurance for their employees.
However, many businesspeople have worried that those measures didn't go far enough.
The National Federation of Independent Businesses--a major trade group--joining the lawsuit multiple state attorney generals have filed against the law does not help that perception.
They believe that the costs will still be too high.
Acknowledging this issue, Massachusetts is taking the first steps beyond the federal law.
Democrats in the State Senate are proposing a one-time tax of $100 million, levied towards hospitals.
According to Therese Murray, the chamber's president, those funds will go directly towards a fund that will reduce the out-of-pocket cost of small employers' premiums.
Another relevant provision of the bill lets multiple small businesses work together and maximize their buying power through health insurance associations.
The associations, of which there can be four with under 15,000 people each, should give them greater negotiating clout versus the health insurance companies.
In addition, firms that provide wellness incentives to their employees will receive a 5 percent subsidy on their insurance costs, on top of the federal government's subsidies.
The proposal, which also mandates greater disclosure of costs, passed the Massachusetts Senate on a pure party line vote.
Murray is hoping that the state's House of Representatives will also pass the bill, which supporters believe will save small businesses up to 15 percent on their group health insurance.
During recessionary times, those funds would then be freed up for job creation.
While a laudable goal, others are certainly skeptical.
Republicans in particular feel that it is a stopgap mechanism that does nothing to solve the problem of ballooning health care costs.
If the state Congress reaches a consensus on a joint bill, Democratic Governor Deval Patrick will most likely sign it.
The legislation includes provisions that provide tax credits to small businesses that partially subsidize the cost of health insurance for their employees.
However, many businesspeople have worried that those measures didn't go far enough.
The National Federation of Independent Businesses--a major trade group--joining the lawsuit multiple state attorney generals have filed against the law does not help that perception.
They believe that the costs will still be too high.
Acknowledging this issue, Massachusetts is taking the first steps beyond the federal law.
Democrats in the State Senate are proposing a one-time tax of $100 million, levied towards hospitals.
According to Therese Murray, the chamber's president, those funds will go directly towards a fund that will reduce the out-of-pocket cost of small employers' premiums.
Another relevant provision of the bill lets multiple small businesses work together and maximize their buying power through health insurance associations.
The associations, of which there can be four with under 15,000 people each, should give them greater negotiating clout versus the health insurance companies.
In addition, firms that provide wellness incentives to their employees will receive a 5 percent subsidy on their insurance costs, on top of the federal government's subsidies.
The proposal, which also mandates greater disclosure of costs, passed the Massachusetts Senate on a pure party line vote.
Murray is hoping that the state's House of Representatives will also pass the bill, which supporters believe will save small businesses up to 15 percent on their group health insurance.
During recessionary times, those funds would then be freed up for job creation.
While a laudable goal, others are certainly skeptical.
Republicans in particular feel that it is a stopgap mechanism that does nothing to solve the problem of ballooning health care costs.
If the state Congress reaches a consensus on a joint bill, Democratic Governor Deval Patrick will most likely sign it.
