Thursday 14 August 2008

Legislation Would Allow Small Businesses To Form Health Insurance Purchasing Pools


Rep. Don Cazayoux (D-La.) on Thursday promoted a bill (HR 6210) that would allow the institution of statewide or nationwide health indemnity purchasing pools for small businesses and self-employed individuals, the Baton Rouge Advocate reports.

The Small Business Health Options Program would provide small businesses with annual tax credits of as much as $1,000 per employee, or $2,000 per family, provided that the companies cover more than 60% of the cost of health policy premiums for workers. In addition, the legislation would provide free-lance individuals with annual tax credits of as much as $1,800 per employee, or $3,600 per family (Chacko, Baton Rouge Advocate, 8/8). Under the flyer, health insurers could non increase premiums in the event that small-business employees become ill or file more claims. The legislation also would establish a Web situation to allow the comparing of information about various health plans (Kaiser Daily Health Policy Report, 6/11).

Cazayoux, one of the more than 45 co-sponsors of the bill, said that the lawmaking would reduce health insurance costs for small businesses through the expansion of risk crosswise a large pool of employees. According to Cazayoux, small businesses on average pay 18% more than large companies for the same spirit level of health insurance for employees. He added that small-business owners, employees and their dependents account for more than 28 1000000 of the almost 47 million uninsured U.S. residents (Baton Rouge Advocate, 8/8).


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