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Michigan Businesses Urged to Study Costs and Affects of U.S. Healthcare Reform Packages
Date:9/10/2009

of both associations, together with a membership legislative task force, have been meeting regularly to review the impact of health care reform on businesses "for the greater good of our communities."

Provisions of U.S. House of Representatives proposed bill include:

  • Creates a government run insurance plan called a "public option," which would allow the government to negotiate payment rates with health providers;
  • Creates a health insurance "exchange;" a new regulated marketplace for low-income individuals to purchase insurance. It would allow individuals and small employers to comparison shop among private and public insurance plans. It would also prohibit insurance companies from refusing coverage for a pre-existing condition;
  • Requires all individuals to obtain health insurance or pay a penalty of up to 2.5 percent of their modified adjusted gross income;
  • If employer insurance costs an employee greater than 12 percent of their income they would be eligible to enter into the exchange and apply for affordability credits;
  • Individuals would be permitted to keep their current coverage as a "grandfathered plan" and the bill would allow a 5-year grace period for current group health plans to meet the new guidelines established in the bill;
  • Establish a small business tax credit for firms that want to provide healthcare coverage to their employees.

While the Bill exempts small businesses with an annual payroll of less than $500,000 from paying a payroll tax, companies with larger payrolls would pay a tax anywhere from 2 percent to 8 percent, depending on their payroll amount.

The proposed U. S. Senate Bill requires all employees to receive health care in a "pay or play model." In addition, the Senate Bill calls for:

  • Companies with less than 25 e
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SOURCE Michigan Business and Professional Association
Copyright©2009 PR Newswire.
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