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PRESS RELEASES
For Immediate Release
Tuesday, December 8, 2009
CCHC Releases Policy Brief:
Small Business Endangered by
Health Insurance Reform
(St. Paul/Minneapolis) - The Citizens' Council on Health Care (CCHC) today releases a new policy brief on the impact of pending health insurance reform on Small Business:
Small Business Endangered by Health Insurance Reform - An Overview of Major Tax and Regulatory Requirements that Federal Health Reform Legislation Would Impose on Small Employers
"The health insurance reform bills proposed by Speaker Pelosi and Senator Reid pose serious threats to the viability of small businesses across the country," says Twila Brase, president of CCHC, and co-author of the policy brief.
"If small businesses can no longer thrive under the proposed health insurance reform legislation, the projected cost of the pending bills is far too low. If enacted, we would expect fewer Americans to have jobs and more Americans to become dependent on the government for health care," she says.
The policy brief's Executive Summary provides key findings from the House and Senate health insurance reform bills, including page and line citations, including:
- New Taxes - New taxes and assessments are imposed on business for failure to provide coverage, employee use of tax credits, waiting periods for insurance eligibility, funding for state health insurance exchanges, high-income individuals.
- Play or Pay - The House bill penalizes businesses that do not provide health benefits with taxes at 2 - 8% of payroll. These rates are not indexed for inflation.
- Limits Business Expansion - The House bill’s tax on high-income individuals is expected to act as a direct tax on business expansion since many small business owners finance expansion using income reported on their individual tax returns. The tax includes a 5.4% increase in capital gains tax. In addition, high-income earners will pay the planned increase in the payroll tax at a higher rate: 3.4%.
- Definitions Matter - The definition of 'large employer' and 'small employer' are important. They determine which taxes, penalties, and requirements apply.
- Waiting Period Prohibited - The Senate Bill limits waiting periods for employee coverage to 90 days and fines employers who have 1-2 month waiting periods.
- Reporting Requirements - Both bills require government reporting of company and employee health insurance status, including details specific to each employee.
- HSAs and Whistleblowers - The Senate bill threatens health savings accounts. The House bill provides whistleblower protections to employees.
Brase cautions, "Small businesses are the engine of the American economy, enabling innovation, cutting costs through competition, providing vital services to American consumers and providing jobs for Americans all across the country. Congress should not let their enthusiasm for health insurance reform blind them to the consequences of disabling and destroying small business."
MEDIA CONTACT:
Twila Brase, President
651-646-8935 office
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Citizens' Council on Health Care
1954 University Avenue West, Suite 8, St. Paul, MN 55104
Phone: 651.646.8935 / Fax: 651.646.0100, e-mail
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