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Washington, D.C. – The Senate today moved toward a vote on a Republican small business health coverage bill that would undermine state-enacted consumer protections for an estimated 393,000 West Virginians. The Republican bill would leave it up to insurance companies to determine what would be covered and would leave it up to the companies to set their own rates. Under that bill, West Virginians would likely see a reduction in access to essential health care services, including treatment for alcoholism, cervical cancer screening, colorectal screening, mammography screening, home health care, mental health services, well child care, and supplies for diabetics.

“Providing greater access to health insurance for our small business owners and employees is absolutely critical,” said Rockefeller. “But we should do this in a way that actually helps small businesses and employees. The Republican bill would ignore critical protections that West Virginia has enacted at the state level. It would create a system that would keep West Virginians from getting many of the basic health care services that they need. Unfortunately, the bill that they’re trying to pass would hurt the businesses and employees it is supposed to help.”

Rockefeller and most Democrats support another bill, the Small Employers Health Benefits Program Act, but Republicans have blocked efforts to bring this bill up for a vote. The bill’s Small Employers Health Benefits Program (SEHBP) 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.

“So many West Virginians have told me that, due to the high cost of insurance, their employers haven’t been able to provide them with the coverage they need. Passing the Small Employers Health Benefits Program Act would mean that West Virginians will have access to high-quality, affordable health coverage. That’s something that should be their right.”

The Rockefeller bill would also give tax credits 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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