Lawmakers Introduce Legislation That Would Allow Small Businesses To Form Nationwide Pools, Provide Health Insurance Tax Credits
Senate Majority Whip Richard Durbin (D-Ill.) and Sens. Olympia Snowe (R-Maine), Blanch Lincoln (D-Ark.) and Norm Coleman (R-Minn.) on Wednesday introduced legislation that would allow small-business owners to establish nationwide purchasing pools to negotiate lower health insurance premiums, CongressDaily reports.
The bill would provide a $1,000-per-employee tax credit to employers who offer their single workers health benefits, and a $2,000 credit for employers who offer family coverage. Self-employed individuals would be able to purchase insurance through the same pools, and with those who purchase individual coverage eligible for a $1,800 tax credit. The tax credit would double for self-employed individuals who purchase family coverage. The bill also includes a provision that would prohibit insurers from setting premiums based on health status and claims.
The legislation is supported by the National Federation of Independent Business, the Service Employees International Union, the National Association of Realtors and state insurance commissioners. SEIU, NAR and the insurance commissioners previously had opposed legislation that would have established similar association health plans, CongressDaily reports. According to Snowe, the new legislation is different because states could choose not to participate in the pools and because the bill "respects state rights" by allowing state insurance commissioners to continue regulating plans (Johnson, CongressDaily, 4/2).
