The Power of A

The Senate Finance Committee yesterday released the legislative language for its health care reform proposal.  The massive 1,502 page bill contains few surprises, reflecting the Finance Committee mark-up earlier this month and technical corrections made to the language.

Of note to the nonprofit community is the legislative language on the small employer subsidy the bill would give for providing insurance.  Previously, the draft had indicated that only 501(c)(3) organizations would be eligible to receive a partial withholding tax credit if they offered credible insurance, had 25 or fewer employees, and had an average salary of under $40,000.  The new legislative language expands the number of organizations eligible to receive the credit:

“TAX-EXEMPT ELIGIBLE SMALL EMPLOYER.-For purposes of this section, the term ‘tax-exempt eligible small employer’ means an eligible small employer which is any organization described in section 501(c) which is exempt from taxation under section 501(a).”

While there are few surprises, there is still controversy surrounding the legislation.  The bill contains a 40% tax on so-called high-end insurance plans as the major revenue raiser for the bill.  Such a tax has raised opposition from liberal Senate Democrats and a majority of the House Democratic caucus.  Currently, Majority Leader Reid (D-NV) and other key Senate Democrats are working on merging the Finance and HELP committee bills for floor consideration.

Quick Hits

The Finance Committee changes eligibility for insurance subsidy to being based on “modified gross income” (subscription)… America’s Health Insurance Plans (AHIP) responds to complaints about their study on the impact of the Senate Finance bill… Could the public option make its way into the Senate health care bill?