Budget Woes May Undercut Bill to Stimulate Health Insurance for Small Biz

A shrinking state budget threatens legislation that would provide small business owners an incentive to offer health insurance to employees.

The bill would provide an annual tax credit or cash grant for each employee eligible for health insurance. The specific amounts haven’t been finalized, but the authors figure a program would cost roughly 6-million dollars a year.

Jim Brown directs Tennessee’s chapter of the National Federation of Independent Business. He says even those who are already buying insurance from the health care market are eager to see something passed.

“28 percent of our members in a recent survey said this would be a determining factor for them to either stay in the market over the next three years, or if they’ve been out of the market to get back in.”

According to that survey, less than half of business owners with 10 or fewer employees currently provide health insurance.

The General Assembly considered similar legislation last year, but the tax credit bill was sent to a study committee.