Micro-Businesses Exempt of HealthCare Reform
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.
Thank you,
Ryan H.
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