Small Business Health Insurance

The Lt. Governor’s Commission on Small Business Health Insurance Costs has approved its final recommendations to help small business owners better afford health insurance for their employees. The bipartisan panel agreed to a diverse array of tools for small businesses including the creation of a voluntary public-private purchasing pool to allow participating small businesses to get better rates, a tax cut for small businesses that provide insurance for their workers and a separate tax cut for those who cover at least ten percent of the premium for an employee’s dependent, and an insurance buying guide to give small businesses owners the information they need to become better insurance consumers. “I am really proud of the work this panel has done,” said Lt. Governor Tim Kaine. “I believe the recommendations the panel is making will empower small business owners to better address the number one problem facing them today, the skyrocketing cost of health insurance.” The tax credit is aimed at businesses that employ 50 or fewer workers. They will be eligible for an annual $500 tax credit for each insured worker. They will qualify for an additional $100 tax credit for an employee’s dependent if they pay at least ten percent of that person’s premium. A single company would be eligible for up to a maximum $30,000 in annual tax relief under the plan. The panel is also recommending encouraging employers to offer wellness programs at work, and an annual report to track Virginia’s progress in closing the insurance gap. Currently, one out of every seven Virginians lack health insurance. Of those who are uninsured, 75 percent either work full time or live with someone who does. At least half of Virginia’s uninsured workers work in small businesses. Typically the smaller the employer, the less likely it is to provide health insurance.