LANSING ? The Small Business Association of Michigan supports legislation, introduced by Rep. Tim Moore (R-Farwell), to completely remove all health-care costs from a company?s Single Business Tax liability in 2006.
?We do not believe that health insurance premiums should be taxed at any level, so this measure goes a long way in helping small businesses afford health insurance coverage,? says SBAM Vice President Government Relations Barry Cargill. ?It?s also worth noting that, to the extent that this bill would make it more affordable for small businesses to offer health insurance coverage to their employees, it can have an impact in helping to reduce the number of uninsured in the state.?
SBAM continues to seek long term changes in our health insurance system to make it more affordable for small businesses to obtain and provide coverage. Health insurance costs have risen for a number of reasons, according to Scott Lyon, vice president Small Business Insurance Services for SBAM., including an increase in inpatient and outpatient costs, the dual impact of new/higher cost drugs and an increased demand for drugs brought on by direct-to-consumer advertising, the impact of mandated benefits on the cost of insurance, a nursing shortage, advancements in technology, an aging population, life style issues and the poor health of our population, medical liability and the generally litigious nature of our community, and the lack of good, easy to find information about the quality of care being provided in our hospitals and doctor offices.
Over the long haul, SBAM believes its important that health care consumers become more responsible for their health care financial decisions,? Lyon said. ?That will encourage them to be more careful in how their health care dollars are spent and will exert a downward pressure on the cost of health care.?
Greater awareness of the availability of Section 125 programs for small employers (where employees can elect to use pre-tax dollars to pay their portion of certain group sponsored health care benefits and/or certain other eligible expenses not covered by insurance) will also help ease the pain of rising health care costs, according to Lyon.
