WASHINGTON, DC— U.S. Senator Bob Casey today applauded the findings of a new report by consumer health care advocacy group Families USA that found that more than 90 percent of small businesses in Pennsylvania will qualify for tax credits under the Patient Protection and Affordable Care Act. The credits will help small businesses pay for the cost of employee health coverage.
“Thanks to the new health care law, help is now available for small business owners who are struggling financially to provide their workers with adequate health coverage,” said Senator Casey. “This tax credit is a huge step forward in enabling Pennsylvania’s small businesses to stay competitive in a challenging economy and ensuring job and health security for their employees.”
The tax credit targets small employers with up to 25 workers. In Pennsylvania, this means approximately 160,700 small businesses will qualify. Nationally, more than 4 million small businesses—83.7 percent—are eligible for the credit in 2010.
The report, entitled “A Helping Hand for Small Businesses: Health Insurance Tax Credits,” also notes that the health reform law has additional provisions to aid small businesses now and in coming years. Among those provisions:
• Starting this month, small business owners are able to view all existing health coverage options in their state on a user-friendly website, www.healthcare.gov.
• Starting in 2014, small employers will be able to purchase quality coverage with strong consumer protections through state-based health insurance marketplaces called “exchanges.”
• Starting in 2014, small employers will be eligible for tax credits up to 50 percent, or 35 percent for nonprofits, to cover their workers with policies obtained through the state exchanges.
• Starting in 2014, insurers will be prohibited from charging small employers higher premiums based on their workers’ pre-existing conditions.
The full report on the small business health insurance tax credit is available at: http://www.familiesusa.org/assets/pdfs/health-reform/helping-small-businesses.pdf