NFIB Has a Calculator for the New Small Business Health Insurance Tax Credit

This is from Dr. Bob Graboyes, NFIB Senior Healthcare Advisor:

Firms that qualify for the credit ought to take it, but most who do will be firms who were going to offer coverage anyway. … People who use NFIB’s online tax credit calculator tend to say, “I didn’t know the credits were so small.” At most, a credit offsets 35% of the business’s portion of the insurance premium. But that maximum only applies to firms (and not all firms) with 10 or fewer employees whose average wages are no more than $25,000 per year….  Plus, there are at least eight other factors that can make the credit less valuable than that 35%.

Comments (5)

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  1. Neil H. says:

    So the government is going to give away money (our money) that it didn’t have to give away?

  2. Paul H. says:

    Sounds like a Rube Goldberg tax credit to match the Rube Goldberg nature of the entire bill.

  3. Larry C. says:

    Bootom line: this subsidy is going to do almost nothing to increase the number of people with health insurance.

  4. Devon Herrick says:

    I’ve performed calculations from a variety of scenarios. Only very small firms, with exceedingly low wages, will qualify for the subsidy — which is too low to provide any real incentive for firms to offer coverage.

    Employees with incomes that low, working in firms that small, would be far better off obtaining a subsidy in the Exchange — which is precisely what will happen once the Exchanges open in 2014. Of the 4 million eligible firms, I suspect the subsidy is so low that most eligible firms will not find it worth the effort to jump through all the hoops required to obtain the credit.

  5. Sterphen C. says:

    I think they just want to be able to say they are doing something without spending very much money.