Bill Would Create Small Businesses Health Insurance Pool

Bill Would Create Small Businesses Health Insurance Pool in Group Health Insurance

Earlier this week, members of Congress introduced a bill in the U.S. House of Representatives that would create let small businesses form nationwide and statewide health insurance pools.

Proponents of such pools argue they give groups more purchasing power to negotiate more affordable rates.

States such as Connecticut and have also considered legislation that would create health insurance pools.

The House bill is sponsored by U.S. Representatives Ron Kind from Wisconsin and Phil English from Pennsylvania, reported CongressDaily and the Kaiser Daily Health Policy Report.

The legislation will also provide small business workers with a tax credit to help them purchase coverage. Individual employees would get $1,000 annually, and families would get $2,000.

While larger businesses can still fit health insurance benefits in their bottom lines, small businesses have trouble doing the same. Many small firms are feeling the pinch of rising health care costs and simply cannot afford insurance.

The small business health insurance pool is one idea, but others are looking other products such as high-deductible coverage and Health Savings Accounts to make insurance more affordable for small companies.

“With rising costs pricing small businesses out of the market, it’s no surprise that 60% of Americans without health insurance are from families where the head of the household is self-employed or works in a small business,” said Representative Kind.

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