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CCH® BENEFITS — 4/2/08

Southern States Seek Health Care Reform

From Spencer's Benefits Reports: Three southern states recently introduced health care reform proposals specifically targeting small businesses. Proposals in Georgia and Mississippi would apply to firms with up to 50 employees, while Alabama’s proposal is aimed at employers with fewer than 25 employees.

Mississippi Gov. Haley Barbour had proposed a state-run Health Insurance Exchange Program that would act as a qualified health care plan for small firms. Through the Exchange, employers could make fixed contributions tax-free for each of their employees, and the employees could pay their premiums pretax. In Mississippi, where 18% of the population is uninsured, 72% of firms with fewer than 50 employees do not offer health insurance.

A proposal in the Georgia state senate would provide employers with up to 50 employees a tax credit of $250 for each employee who enrolls in a health savings account-qualified health care plan and give rebates to employees who switch to healthier lifestyles such as quitting smoking, managing their weight, and controlling their chronic medical conditions. Approximately 500,000 people in Georgia are uninsured.

In Alabama, Gov. Bob Riley has proposed state tax incentives for employers with 25 or fewer employees to offer health insurance to their employees and to workers with earnings of less than $50,000—they would be able to deduct from their state income tax twice their health insurance premium contribution.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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