Reform to the health insurance systems will offer an immediate benefit to small businesses via tax credits starting this year, rather than burden them with continually rising health insurance premiums.
- In 2010, small business owners will be receiving up to 35 percent of the employee premiums they pay.
- In 2014, the maximum tax credit will increase to 50 percent. This will allow small business owners to seek plans through health insurance exchanges. These exchanges are a marketplace where small businesses pool their risk together, which will reduce administrative costs. By pooling their risk it will prevent insurance companies from increasing premiums for a small business because one worker gets sick or has a pre-existing condition. Dental and vision coverage also qualify for this credit.