Dems Unveil Latest Health Reform Proposal
October 29, 2009 (PLANSPONSOR.com) - Employers with
100 or fewer employees could buy health insurance coverage
from a new Health Insurance Exchange in 2013, as part of
proposed health reform legislation unveiled Thursday by U.S
House Speaker Nancy Pelosi (D-California) and other
Democratic leaders.
According to news reports and a Congressional
summary of The Affordable Health Care for America Act
(H.R. 3962), small businesses would be eligible for
federal subsidies to help pay for workplace policies,
while large firms would be required to cover their
workers and most individuals would be required to carry
insurance.
Employers that choose to offer coverage would
contribute at least 72.5% of premiums for workers and 65%
for families.
With low-wage workers, the person can opt for
subsidized coverage through the exchange partly funded by
that person's employer.
Companies not offering qualified coverage would contribute
8% of their payroll to help cover expenses of workers
seeking coverage through the exchange.
The bill indicates that an employee's share of
premiums for employer-provided coverage offered through
the exchange may be paid on a pre-tax basis through a
cafeteria plan, but exchange coverage that is not
employer-offered is not eligible to be offered through a
cafeteria plan.
"In addition to the targeted assistance, the
exchange and market reforms provide a long-sought
opportunity for small businesses to benefit from a more
organized, efficient marketplace in which to purchase
coverage," the Congressional summary
indicated.
The 8% requirement is phased in for small
businesses with an annual payroll between $500,000 and
$750,000. There is also a tax credit program to help
low-wage small businesses offer coverage to their
employees.
The bill summary said small businesses with annual
payrolls below $500,000 are exempt from requirements to
offer or contribute to coverage, including the 8% payroll
payment.