WASHINGTON, March 22, 2011 /PRNewswire-USNewswire/ — Small businesses are finding it easier to secure medical coverage for their employees following implementation of a new tax credit that was enacted through last year’s health insurance reform law. According to a report released today by Democrats on the House Committee on Small Business, the tax credit provides $40 billion in relief for entrepreneurs. The report is being issued to coincide with the one-year anniversary of the “Affordable Care Act” being signed into law.
“Small businesses’ health premiums have skyrocketed over the last ten years, making it difficult for firms to afford coverage for their employees,” said Rep. Nydia M. Velazquez (D-NY), the Ranking Member of the House Committee on Small Business. “It is clear the new tax credit is already enabling more businesses to offer their workers health insurance.”
Among the report’s findings:
- As many as 6.7 million firms will be eligible to claim the tax credit.
- The healthcare credit provides tax relief in the amount of $40 billion for entrepreneurs.
- The tax credit will bring the cost of health care coverage back down to 2003 levels.
- For eligible small businesses, it holds the potential to reduce the annual out-of-pocket costs for each employee’s health insurance costs by $3,500.
- As many as 650,000 firms have begun offering coverage in 2010 that were not offering coverage in 2009.
- Between 2009 and 2010, coverage rates grew from 46% to 59% after the tax credit was made available.
The full report is available online by clicking here.
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