Insurance and business groups want an early Christmas present from Congress: passing a bill intended to help small businesses avoid hefty fines over healthcare.
Nearly 30 groups, including influential business lobbies such as the U.S. Chamber of Commerce and the National Federation of Independent Business, urged House and Senate leadership on Friday to take up a bill that would eliminate a fine for employers who give their workers money for getting their own healthcare coverage.
“If Congress fails to act soon, employees across the country could ring in the new year without financial healthcare assistance from their employers,” said Joel White, president of the Council for Affordable Health Coverage, a coalition of insurers and businesses.
The group was among 26 that called for passage of the House bill called the Small Business Health Act.
Normally, a small business owner can pay his employee to get health insurance on the individual market instead of having to provide it. However, on July 1 the Internal Revenue Service found such arrangements weren’t allowed, according to the coalition’s statement.
The agency can fine an employer $100 per day, per employee, for such arrangements. The House bill aims to strike that fine.
The groups want the bill to be taken up on the House floor before the end of the year.
If the House doesn’t take it up, it could be added to the spending package that must be approved by Dec. 11 before the government runs out of money.
White said movement is needed as the fines could force small businesses to withdraw reimbursements.
“With penalties that could amount to $36,500 per employee, or $500,000 total, employers will be forced to draw back their helping hands,” he said.
