TEXT OF STORY
BILL RADKE: A new report out today takes a look at how small businesses are affected by the new health care reform law. The law includes a tax credit
to help small businesses afford health insurance.
Marketplace’s Nancy Marshall Genzer has that.
NANCY MARSHALL GENZER: The tax credit applies to businesses with 25 or fewer workers and an average wage below $50,000. The report was released by the Commonwealth Fund, a private foundation that researches health care policy.
The fund’s vice president, Sara Collins, says the credit will be worth a lot.
SARA COLLINS: This will save small businesses about $40 billion over the next 10 years. So this is a significant economic stimulus.
Still, some small business groups have been less than enthusiastic. They point out that the tax credit is temporary. And they say the new health care law doesn’t do enough to bring down the cost of premiums.
Molly Brogan is a spokeswoman for the National Small Business Association.
MOLLY BROGAN: A tax credit on a health insurance plan that’s extremely expensive isn’t going to do a whole lot of good.
But some research points to lower costs. The Congressional Budget Office says premiums for small businesses could fall as much as 4 percent. The CBO says the health care reform law simplifies the process of buying insurance, so administrative costs could go down.
In Washington, I’m Nancy Marshall Genzer for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.