FROM THE FOUNDATION

Redefining the Safety Net

Should California establish a Basic Health Program for certain low-income residents? CHCF's Marian Mulkey captures a recent policy conversation in a Health Affairs blog.

Accountable Care in Action

A new post on the Health Affairs blog details how CalPERS kept costs down in Sacramento through a "virtual" ACO with insurers and providers.

Career Opportunity: Senior Program Officer

This position will play a major role in furthering the goals and objectives of the foundation's Better Chronic Disease Care program.

Capitol Desk

Monday, January 24, 2011

Small Businesses Eligible for Health Insurance Incentive

Only 43% of small business owners are familiar with a tax credit that could help pay their health insurance costs for employees, according to a national survey released last week by the Small Business Majority (SBM).

"I'm not surprised," John Arensmeyer of the California chapter of the SBM said. "There has been a lot more heat than light shared on this law, so there's been a lot of confusion."

Arensmeyer has worked on a statewide "listening tour" for the past nine months, talking to small business owners about the creation of California's health benefit exchange and the potential savings from the tax credit.

"People don't really know for sure what's in the bill," Arensmeyer said. "Then when they see what's in it, they're pretty receptive to it."

According to a different SBM study released last month, a lot of California businesses could use the tax credit that allows businesses to declare a tax credit of up to 35% of their health insurance costs beginning last year (if they have fewer than 25 employees with average annual wages under $50,000).

"What we've found in California was that 80% of businesses are eligible for the credit," Arensmeyer said.

That's why Arensmeyer has been traveling the state, he said, to see what people's concerns are about the health reform law, and to make sure people understand what they might get out of it.

He said his organization is summarizing the results of the listening tour and will issue a report about it on Feb. 1. He also plans to do a survey specific to California right after that.

"We'll be in the field in February or March," he said, "and by early spring we'll have some results."

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