Healthcare Update: Senate Began Floor Debate on Nov. 30
On Nov. 30, the United States Senate began floor debate on their version of healthcare reform – HR 3590. This legislation has been scored by the Congressional Budget Office at $849 billion over ten years, reducing the deficit by $130 billion and insuring 94% of the American population.
 The Senate healthcare bill is far less burdensome to small business compared to the House version, however, there are some similarities. The Senate bill mandates that all individuals carry health insurance, there is a public option (where states can opt out), and there are also some employer responsibilities. In its current form, there are not the necessary 60 votes to pass this legislation. As a result, a number of amendments will be offered and debate will continue fervently in order to pass the legislation by year’s end. Senators must compromise on divisive issues such as the public option, abortion, and immigration.
Employer Responsibilities:
Conditional mandate: Employers with greater than 200 employees must automatically enroll all new employees in health care coverage. Employers with more than 50 employees must offer coverage to their employees.
Employers with more than 50 employees that do not offer coverage and have at least one employee receiving the premium assistance tax credit will be fined the lesser of $750 multiplied by the number of employees or $3,000 for each employee receiving a tax credit.
NOTE: Employers with 50 employees or less are exempt from this responsibility.
Employers with more than 50 employees will pay a fine for implementing waiting periods for employees who wish to enroll in coverage as follows: $400 per employee during a 30-60 day waiting perios; $600 for any employee during a waiting period exceeding 60 days.
Small Business Tax Credit:
Tax credits equal for 50% of the amount paid by a small employer for employee health coverage. Limted to firms with 25 or fewer full time employees and with average annual wages below $40,000. Full credit phases out for employers with more than 10 full time employees or average annual wages.
Income Tax:
Increase the hospital insurance payroll tax by 5% on individuals earning over $200,000 and couples earning $250,000 effective 2013.
Insurance Fees:
40% excise tax on employer sponsored health coverage that exceeds $8500 for an individual and $23,000 for families, effective 2013.
For more information, e-mail Carlos Gutierrez or call him at 800-368-5242 x8242.
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