Wednesday, August 18, 2010

Um, about those tax breaks...

You're not getting them:

"Fewer than 2 million of the nation’s 6 million companies with employees qualify for the small-business tax credits included in the new health insurance reform law."

Says whom? Says the National Federation of Independent Business. Now, we've had our issues with the NFIB in the past, but this seems to comport with the fact that there are so many hoops through which to jump that most small business - which the "break" was supposed to benefit - will, in fact, be ineligible.

Why is that?

Here's why. To be eligible, an employer must meet all three of these criteria:

■ have fewer than 10 employees
■ with an average compensation of less than $25,000
■ and pay at least half of their health insurance premium

For one thing, how many employers can still afford to pay for "at least half" of their employees' premiums? I daresay not many. And good luck, by the way, if you're hoping to become the 11th employee at XYZ Widgets, or expect that raise to take you over $25k a year if you're fortunate enough to already work there.

It's far more likely that these employers will drop group cover altogether: that's a lot more cost effective than some potential tax break.

Earlier this week, Bill posted his findings regarding the Kaiser Family Foundation Health Reform Subsidy Calculator, a handy tool for individuals. The NFIB has their own little widget, which can help employers determine whether or not they're in line for this much vaunted tax break.

And what about all those entrepreneurs, both voluntary and involuntary? Well, they're outta luck, as well.

But surely, even without the tax credits, insurance premiums will decline as promised, right?

As will come as no surprise to regular readers, not so much:

[Video Hat Tip: Hot Air]
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