Posted on March 14, 2011 11:16
Categories: Special Populations | Employer and Individual Insurance
Topics: Employer-Sponsored Coverage | Health Care Reform | Legislation (National) | Uninsured
Health Affairs released this brief examining the national health care reform law’s small business tax credits. The brief explains that the credits are designed to encourage small businesses to offer employees health coverage, and notes that federal officials estimate that up to 4 million companies may be eligible for the credits. The brief also reports that the Congressional Budget Office (CBO) estimates that the credits will save small businesses $40 billion through 2019. The authors also discuss criticism of the credits, including allegations that they are too limited in scope and may serve as a hiring disincentive, because they only benefit companies with fewer than 25 employees.
From the report:
Small businesses frequently face steep premiums for health insurance coverage and, as a result, their workers are more likely to be uninsured than those who work for larger companies. Various provisions of the Affordable Care Act are intended to address the problem. The most targeted effort now in effect is a federal tax credit that will offset up to half of the premium costs for small businesses.
The federal government has notified 4 million companies that they may be eligible for the credit. The Congressional Budget Office estimates that the tax credits will reduce tax payments for small employers by $40 billion over the 10 years between 2010 and 2019. This brief describes the tax credit, issues related to its implementation, and some other provisions of the law that may help to expand coverage for workers employed by small businesses.
Full Brief: Health Policy Brief: Small Business Tax Credits
Health Affairs. (2011). Health Policy Brief: Small Business Tax Credits.
E-mail to Friend |
Print |
Permalink |
Post RSS
