Small Business Finance News
Baucus Health Care Plan A Mixed Blessing For Small Business
Written by Jenna Weiner
New healthcare law would result in both burdens and benefits to the small business sector.
The Senate Finance Committee unveiled its long-awaited health care proposal today, and the news for small business owners is both positive and negative.
The $856 billion health care bill put forward today by Senator Max Baucus would help some small businesses pay their employer contributions towards health care by offering tax credits. However, the bill also places a burden on businesses with more than 50 employees, taxing employers a set amount for each of their workers that receives government assistance to pay for health care.
More uniformly positive news for small business owners, particularly those with low-paid employees, is that the bill would both dramatically expand eligibility for Medicaid and offer significant tax credits for those whose incomes are less than 400 percent above the poverty line.
The bill would also introduce an individual mandate, meaning that individuals would be subject to a stiff fine for not having health insurance, as well as bar insurance providers from denying coverage to those with pre-existing conditions. Rumors that the bill would provide health care for illegal aliens proved false, as it stipulates that participants in its program must prove their citizenship.
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