According to a new report, about 90 percent of Missouri’s small business owners qualify for a new tax credit that will help them provide health insurance for their employees. KSMU’s Theresa Bettmann files this report.
The report is from the consumer health organization Families USA, and the small business advocacy group Small Business Majority. This report details which business owners are eligible for the first wave of health care related tax credits this year. This tax credit program is part of the Patient Protection and Affordable Care Act passed by Congress, and signed into law by President Barack Obama.
Ron Pollack is executive director for Families USA. He says that currently less than 50% of Missouri’s small business owners can afford to provide coverage for their employees, and that this credit will make a positive difference.
"Our estimate is that 85,100 small businesses in Missouri will qualify for the small business tax credit this year. That constitutes almost 92%." Pollack said.
The new health care laws have many provisions that will not be implemented until 2014, which has had many small business concerned about what happens now. In 2014 the laws are to expand to include state based options, larger tax credits, and doing away with excessive charges for workers with pre-existing conditions. Pollack says that the tax credits which go into effect this year are estimated to include a large number of Missouri small businesses.
"The tax credits are provided on a sliding-scale based on the size of the firm, as well as the compensation received by employees in that firm. Our estimate is that Missouri small businesses will qualify for the maximum tax credit which would pay up to 35%." Pollack said.
Non-profit organizations also will receive help from this new tax credit in the maximum amount of 25% of the cost to provide health care coverage. You can find links below to more information. For KSMU News, I’m Theresa Bettmann.
Click here to view national healtcare change information
Click here to view the report from Families USA and Small Business Majority