JEFF LAMBERTI

STATE SENATOR

Thirty-fifth District

Statehouse: (515) 281-3371

jeff.lamberti@legis.state.ia.us

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The Senate

State of Iowa

Eighty-first General Assembly

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Des Moines, Iowa  50319

 

 

 

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FOR IMMEDIATE RELEASE                             

Wednesday, December 14, 2005                                         

 

Lamberti calls for Additional Incentives for Small Businesses to offer Affordable Health Insurance

 

(Des Moines)  Iowa Senate Co-President Jeff Lamberti (R-Ankeny) today said one of his top priorities for the 2006 session will be providing additional incentives for small businesses to offer affordable health insurance for their employees. 

 

“One of the biggest challenges facing Iowa’s working families is securing affordable healthcare,” said Lamberti.  “We need to reduce the budget burden on families by making it easier for employers to provide affordable health insurance.”

 

Lamberti said he will propose legislation to offer a tax credit for small businesses that provide insurance coverage for their workers.  A company with fewer than 50 employees will be eligible for a tax credit of $1,000 per employee with a maximum of $25,000 per company for providing either health insurance or participating in a Health Savings Account.

 

“When workers can count on affordable health insurance from their employer, their families have one less thing to worry about,” said Lamberti.  “But health insurance costs have become a big cost for U.S. businesses, resulting in many companies dropping health insurance altogether as an employee benefit.  I will introduce legislation this session that reduces the fiscal burden on businesses, and helps reverse this trend.”

 

After full implementation, the program will offer a total of $250 million of tax credits per year and will be phased in over the next 5 years.

 

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 “It’s time for bold legislative action to deal with this problem,” added Lamberti.  “This legislation will result in more insured Iowans who have access to affordable, quality health care.  It’s a win-win for both the state and the people of Iowa.” 

 

Small Business Tax Credit

 

§         For businesses with fewer than 50 employees.

 

§         A business within this range would be eligible for a $1,000 tax credit per employee that the business covers with either health insurance or invests in a HSA for the employee.  

 

§         A company can receive up to $25,000 per year in tax credits for providing health insurance to its employees.

 

§         A total of $250 million of tax credits will be issued when the program is fully implemented after 5 years.

 

§         According to preliminary US Department of Labor statistics, there are 81,937 companies in Iowa employing 50 employees or less.

 

§         According to a Kaiser 2005 survey of businesses nationwide, 47 percent of companies employing up to 9 individuals offer health insurance, while 60 percent of businesses overall offer health insurance.

 

§         A conservative estimate, based on the above national statistics, would point to over 200,000 individuals employed by small businesses are uninsured.

 

 

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