Now that the Health Care and Education Affordability Reconciliation Act of
2010 (HR 4872) has passed into law, what does it mean for the millions of small
business owners across America? Well, the answer to that question really
depends on your current practices. It could be very good news or bad news. My
focus today will be on the "Good News".
If you are among the millions of small business owners who are currently
providing health insurance for your employees, then the news couldn't be any
better. Under HR 4872, you could now qualify for the small business tax credit
established by the Act to encourage small business owners to purchase group
health coverage for their workforce. Employers who contribute at least
50% of a still unspecified "benchmark premium" will be entitled to a tax credit
of up to 35% of the premiums. Tax credits are also available for small
non-profit organizations as well, however the amount of the credit is only 25%
of their premium contributions
To tell you more about the "Good News" click on this video from the IRS.
Does This Small Business Industry Group Support The Little Guy?
The National Federation of Independent Business proclaims in their tagline to be the "Voice of Small Business". If that's the case, why have they thrown their support and money (members dues and contributions) behind a lawsuit whose sole purpose is to repeal the Health Care and Education Affordability Reconciliation Act?
HR 4872 helps to level the playing field for small business owners. For too long, large corporations have had the advantage of purchasing better health insurance coverage and employee benefits for less then their smaller competitors. This makes it harder for small and growing companies to attract and retain a qualified and productive workforce.
The purpose behind health insurance reform, and HR 4872 in particular, is to find ways to reduce costs and make the process of purchasing small group insurance easier. The act creates small business health insurance "exchanges", and provides subsidies of up to 35% of premiums paid for companies with 25 employees of less. Aren't these the very business owners that the NFIB claims to represent? Aren't they always screaming that taxes are too high, and small group health insurance is too expensive? What is it about the small business tax credit that I don't understand?
No Free Lunch - Everybody Pays Into the System
Why would the National Federation of Independent Business join forces to repeal HR 4872? The bill does not create a single payer system or "Medicare" for all. The bill has little effect on the insurance industry. The bill allows insurers to continue to market group health insurance with additional protections for employer and employees alike. It even allows employers to keep the coverage they already have.
The bonus is for business owners who have been playing by the rules, and providing their employees with health insurance coverage. They will see lower costs in the form of tax credits, an easier and fairer system with less invasive underwriting, and more transparency in benefits and pricing.
Why help bankroll what will be a very expensive lawsuit? The claim is that HR 4872 imposes on our individual rights as citizens. Isn't this the same group that preaches against Medicaid, Social Security and the concept of "NO FREE LUNCH"? What's wrong with government asking everyone to contribute towards our healthcare system?
