Countering claims by business groups, two new independent studies conclude the healthcare reform law would help a large number of small businesses, including physicians' offices, according to a report by the American Medical News.
A study by the Commonwealth Fund reported that under the law, small firms representing a total of 16.6 million employees would be eligible for tax credits under the law. The law allows a tax credit of up to 35 percent of company payments for health insurance to firms that have fewer than 25 full-time equivalents, average salaries of less than $50,000 and pay at least half of individual coverage costs. The credit increases to 50 percent in 2014.
The tax credits are more likely to be used by companies that already provide insurance to employees, as is the case for 91 percent of physician practices in 2010.
In the other study, RAND Corp. researchers predicted the number of employees offered coverage in the law's insurance exchanges, which will be available for small firms within the next year, would increase from 84.6 percent of all workers to 94.6 percent. The report ran in the New England Journal of Medicine.
However, the National Federation of Independent Business stated in a July release that less than one-third of small businesses, fewer than 2 million, meet the firm size and contribution requirements to qualify for the tax credit.
Read the American Medical News report on insurance coverage.
Read the Commonwealth Fund report on insurance coverage.
Read the NFIB release on insurance coverage.
Read more about insurance coverage:
- Numbers of Insured Americans Falls for First Time in at Least 23 Years
- COBRA Health Insurance Subsidies for Laid-Off Workers Due to Expire
- Hospital Income Likely to Rise as Youths Stay on Parents' Insurance Longer
A study by the Commonwealth Fund reported that under the law, small firms representing a total of 16.6 million employees would be eligible for tax credits under the law. The law allows a tax credit of up to 35 percent of company payments for health insurance to firms that have fewer than 25 full-time equivalents, average salaries of less than $50,000 and pay at least half of individual coverage costs. The credit increases to 50 percent in 2014.
The tax credits are more likely to be used by companies that already provide insurance to employees, as is the case for 91 percent of physician practices in 2010.
In the other study, RAND Corp. researchers predicted the number of employees offered coverage in the law's insurance exchanges, which will be available for small firms within the next year, would increase from 84.6 percent of all workers to 94.6 percent. The report ran in the New England Journal of Medicine.
However, the National Federation of Independent Business stated in a July release that less than one-third of small businesses, fewer than 2 million, meet the firm size and contribution requirements to qualify for the tax credit.
Read the American Medical News report on insurance coverage.
Read the Commonwealth Fund report on insurance coverage.
Read the NFIB release on insurance coverage.
Read more about insurance coverage:
- Numbers of Insured Americans Falls for First Time in at Least 23 Years
- COBRA Health Insurance Subsidies for Laid-Off Workers Due to Expire
- Hospital Income Likely to Rise as Youths Stay on Parents' Insurance Longer