Chicago, Ill. (Vocus) July 25, 2009 –
President Barack Obama is looking to shore up public support for his ambitious health insurance overhaul by easing tension on the contested means to pay for the plans. Most recently, he has proposed a surtax on wealthy families earning more than $1 million annually to help cover expenses. However, not much has been discussed in terms of self employed health insurance or small business owner medical insurance. Since the United States has a solid foundation of entrepreneurship, SelfEmployedHealthNetwork.com points out concerns for self employed people and owners of small businesses..
The latest development that was announced that would most closely affect small business owner medical insurance policies is the “Play or Pay” requirement that is being considered. The plan currently proposes that employers would be required by law to pay for at least 72.5 percent of the cost of an employee’s health insurance premiums for full-time employees. If the employer chooses not to cover this percentage, they will be required to pay a fee based on 8 percent of their payroll.
With this proposal, there are still many unanswered questions. First, this piece does not specify how coverage of health insurance for the self employed would be handled. Second, there has not been a threshold determined for the size of a business. For a small business owner, medical insurance can be too costly for them to participate in and still stay in business.
The chair people of three House committees with jurisdiction over health insurance reform introduced their draft legislation on June 19. It gave more information on how the plan would affect small business owners and health insurance for the self employed. Under the proposed plan, small businesses could choose from insurance plans from a national exchange that would include private insurers and government run plans.
To make it more affordable, entrepreneurs would be able to utilize certain tax credits to help make the insurance coverage more affordable. It is still unclear what the threshold is for small businesses and how this will specifically affect health insurance for the self employed. However, it is always advisable to shop around for complete and affordable insurance coverage.