Micro-Businesses Exempt of HealthCare Reform

by Ryan Hanley
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For the purposes of the legislation introduced in the House of Representatives as America’s Affordable Health Choices Act, a micro-business will constitute any business with less than $250,000 in payroll.  This new legislation states Businesses that do not offer health coverage to their workers would pay an 8 percent payroll tax to help subsidize coverage And by “subsidize” they mean make you pay for the Public Plan.

Here’s the rub… According to this New York Times article, ~75% of the businesses in America employ between one and nine people, and those firms only average ~$102,000 in payroll.  Additionally over 99% of businesses with 200+ employees currently offer health insurance.  So what about the businesses that employ between ten and 200 workers (which constitute 5% of American businesses but employee 37.9 million people)?

In the words of Scott Shane from the New York Times, they are going to get walloped! Yes, he said Walloped!  Basically 5% of US businesses will carrying 99% of burden.  How well do you think those businesses are going fair with an additional 8% payroll tax in today’s economy? My guess is not well.

I know that just about everyone feels that a Public Health Plan is a be-all answer to our Health Benefit problems, but let’s take a look at where the money for these programs is going to come from.  I’m not saying we should keep the current system or even that the current system is adequate, but I don’t think nationalizing HealthCare without addressing COST has any chance to better US lives.  I highly recommend you read the linked article, the healthcare legislation before Congress is very real.

Disclaimer:

This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions take or not taken by the readers based upon such information.

Thank you,

Ryan H.

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  • –Estey

    The House “Tri-Committee” bill is going for the jugular. Keep an eye on what comes out of the moderate Senate Finance Committee. They have jurisdiction over the funding mechanisms for any comprehensive overhaul, and if a massive bill has any chance of clearing Congress, it will need 60 votes on the Senate floor. The Finance bill will, in my opinion, have the best chance to clear the Senate and find it’s way to the President’s desk.

    Early reports suggest that the Finance bill will NOT include an employer “pay-or-play” mandate, and will establish healthcare cooperatives–similar to mutual funds–as a more palatable option for a “public” insurance plan.

  • –Estey

    The House “Tri-Committee” bill is going for the jugular. Keep an eye on what comes out of the moderate Senate Finance Committee. They have jurisdiction over the funding mechanisms for any comprehensive overhaul, and if a massive bill has any chance of clearing Congress, it will need 60 votes on the Senate floor. The Finance bill will, in my opinion, have the best chance to clear the Senate and find it’s way to the President’s desk.

    Early reports suggest that the Finance bill will NOT include an employer “pay-or-play” mandate, and will establish healthcare cooperatives–similar to mutual funds–as a more palatable option for a “public” insurance plan.