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Washington, D.C. -- In his ongoing effort to make sure that West Virginia’s small businesses can provide employee health care coverage without bankrupting their businesses, Senator Jay Rockefeller (D-WV) has sponsored the Small Employers Health Benefits Program Act. The bill would enable small businesses across West Virginia to pool their purchasing power to help reduce employee health care coverage costs. The bill would also provide employers with an annual tax credit that would partially offset contributions on behalf of low-income employees.

“Any serious effort to address the problem of the uninsured in our country must include addressing the difficulty small businesses have paying for health insurance,” said Rockefeller.

The Small Employers Health Benefits Program Act would make thousands of uninsured West Virginians eligible for health insurance coverage. Having access to affordable and comprehensive health insurance would help many of West Virginia’s 250,000 uninsured citizens avoid the health and financial catastrophes that often disrupt the lives of the uninsured.

“This is an effort that will help small businesses afford the insurance they want to provide,” Rockefeller said. “By creating a pool of applicants, we’ll drive down costs for small businesses. That will enable our small businesses to better afford health insurance for their employees.

“This bill also represents an extraordinary leap forward in getting employees the insurance they need. So many West Virginians have told me that, due the high cost of insurance, their employers haven’t been able to provide them with the coverage they need. Passing this bill will mean that West Virginians will have access to high-quality, affordable health coverage in much the same way as federal employees.”

The Small Employers Health Benefits Program (SEHBP), called for in the bill, is modeled after the highly successful Federal Employees Health Benefits Program (FEHBP), which has offered more than eight million government employees and retirees a wide range of private health insurance choices for more than 40 years. SEHBP would give small business employees access to a comparable range of private health plans.

The tax credits would be given to employers, so they could benefit from the advantages and protections available to group insurance purchasers. Under SEHBP, employers would receive an annual tax credit to defray part of the costs employers incur providing health insurance for low-wage workers – those who make $25,000 or less per year. The employer tax credit would be equal to 25 percent of employer costs for workers who are single, 30 percent for those employees who are either married or single with a child, and 35 percent for family policies. The wage limitation would be adjusted annually for inflation.

In addition, employers who cover more than 60 percent of a low-wage worker’s health insurance premium would receive a bonus tax credit. The bonus would be equivalent to a 5 percent add-on per additional 10 percent of premium covered. If the employer covers an additional 20 percent of the premium, an additional 10 percent tax credit would be granted.

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