We’re back again with more exciting news about healthcare in Arkansas. We know it will take years to implement all of the changes to our system via health reform. But did you know that there are also immediate benefits that will accessible this year, including incentives for small businesses?
The cost of providing healthcare to employees is significantly skewed in favor of larger businesses. Small businesses, defined as companies with 25 or fewer employees, have been forced to pay up to 18% more than their larger counterparts for the same coverage. Add to that the increased price of premiums in recent years, and you begin to understand their concern.
But as part of health reform, small businesses will now be able to receive tax credits for providing insurance. These credits will give up to 35% of premium costs back to these companies.
According to a report released today by Families USA and Small Business Majority, our state is expected to benefit substantially from this provision. A whopping 94.2% of Arkansas small businesses will meet eligibility requirements for these tax credits, the highest proportion of any state. The report also highlights other health reform initiatives to assist small businesses and their employees, including:
- An increase in the maximum tax credit amount to 50% with the opening of health exchanges in 2014
- A user-friendly internet web portal to view all existing options for small group coverage beginning this month
- A prohibition on charging higher premiums based on pre-existing health conditions
This is great news for the over 40,000 small business in our state alone, especially those that already provide insurance. It will allow owners to make decisions about coverage without compromising what’s best for their employees or their business. It’s just another of the many economic and social benefits that Arkansas will reap through health reform. Check back soon, we’ll keep you up to date on all of the great things health reform is doing for the Natural State!
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