Report: 80% of State’s Small Businesses Can Get Health Coverage Credit
This year, about 456,500 small California businesses with fewer than 25 employees will become eligible for tax creditsÂ to help finance health insurance coverage for their employees, according to a new report by Families USA and the Small Business Majority, the San Luis Obispo Tribune reports.
The new tax credits were established as part of the federal health reform law.
Overall, 80% of the state's small businesses with 25 or fewer employees qualify for the credits.Â
The report also found that 135,900 small businesses qualify for the maximum tax credit amount of 35%. These employers have 10 or fewer employees earning an average of $25,000 or less.
According to U.S. Rep. Lois Capps (D-Santa Barbara), most small businesses are not able to negotiate lower health insurance rates that larger businesses can gain through group rates.
More than 95% of California businesses with more than 50 workers provided health insurance last year, Capps said.
However, Capps noted that:
- 72% of businesses with 10 to 24 employees offered health insurance last year; and
- 46% of businesses with three to nine employees offered coverage (Cuddy, San Luis Obispo Tribune, 8/17).