Health Care Reform and Small Business (CRS Report for Congress)
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| Release Date |
Revised July 5, 2013 |
| Report Number |
R40775 |
| Report Type |
Report |
| Authors |
Jane G. Gravelle, Senior Specialist in Economic Policy |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
This report considers issues in the employer penalty for small business. It first provides a brief discussion of the need for penalties in comprehensive health care reform and why employer penalties might be useful. It also describes the provisions in the various proposals, beginning with an overview of the proposal adopted, but also discussing approaches considered during the legislative development. The next section discusses the potential impact of employer penalties and credits on small business, including some of the issues raised subsequent to the legislation and options to address them. The final section discusses the effect of proposed taxes on highincome individuals. The analysis in this report indicates that only about 2% of firms with employees would be affected by the penalty, and about 20% of employees are in those firms. Most small firms would be exempted and most large firms already offer health insurance. Therefore any behavioral effects are likely to be limited. Similarly, the 2% of firms affected are larger firms with more capabilities for administrative record keeping. At the same time, a case could be made for eliminating these penalties or revising the penalty structure. Bills: H.R. 3590, H.R. 4872
