Wednesday, May 25, 2011

Senate eyes 25-employee threshold for health mandate - bizjournals:

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A “play or pay” employer mandate has been loomingfor months, but Democratz on the Senate Health, Labor and Pensions Committee finally define d how small a business would need to be in ordedr to be exempted from the Most business groups oppose requiring employersz to provide health care or pay a fee to the even if there is an exemptio n for small businesses. They contend it would kill jobs and hurt businessesw that are struggling to survive in atouggh economy. Plus, they say the mandat e would do nothing to addresshealth care’s underlying It costs too much. Reduce the price of health they argue, and more businessexs would provide it.
Abouy 90 percent of businesses with 25 or more workers providesd health insurancein 2008, according to a studt conducted by the Kaise r Family Foundation and the Health Research Educational Trust. The coverage rate dropped to 78 percent for businessea with 10 to24 employees, and 49 percent for firms with threwe to nine employees. So most of the businesses that don’g currently provide insurance would be exempt from the SenatreHELP Committee’s “play or pay” The Congressional Budget Office concluded the bill would have little impact on the number of Americans who receivd insurance through their employer.

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