Premium Subsidies to Employers

Premium subsidies to small employers who have fewer than 25 employees and average wages of less than $40,000 will be provided with a health coverage tax credit. While Employers with fewer than 10 employees and average annual wages of $20,000 or less are able and pay full credit of 50% of the premium costs are also able to receive the tax credit. However, the tax credit is not permitted for firms that are increasing in size and wages and for employees that are earning more than $80,000 per year.
Employers that are providing health insurance coverage to retirees between the ages of 55 to 64 will be provided with a temporary reinsurance program. The premium program will reimburse the employers for 80% of retiree claims that are between $15,000 and $90,000. These payments from the reinsurance program will be used to lower the costs for those that enroll into the employer plan. A total of $10 billion is set aside for over ten years for the reinsurance program.

Information cited from:
Kaiser Family Foundation (October 15, 2009). Health Care Reform Proposals. Retrieved from http://www.kff.org/healthreform/upload/healthreform_tri_full.pdf.

Tina Wederski