Bill targets health insurance

• By SARAH CHACKO
• Advocate Capitol News Bureau
• Published: Aug 8, 2008 - Page: 12A - UPDATED: 12:05 a.m.

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U.S. Rep. Don Cazayoux, D-New Roads, unveiled legislation Thursday aimed at helping small businesses offer health insurance to their employees.

The legislation, called the Small Business Health Options Program, or SHOP Act, would establish a nationwide health insurance purchasing pool for small businesses and the self-employed.

Cazayoux, a co-sponsor of the bill, said the cost savings would come by spreading the risk of covering a few employees over a greater number of people.

Cazayoux made the legislative announcement at Kellerman Kitchen and Bath in Baton Rouge, which does not offer health insurance to its employees.

Co-owner Jack Kellerman, who has multiple sclerosis, a chronic disease that attacks the central nervous system, said because of his condition, the six employees in his company have to get coverage through individual plans or face higher premiums as a group.

Their inability to offer health insurance has turned off job candidates, hindering the company’s expansion, Kellerman said.

“It disqualifies us from being a potential place of employment,” Kellerman said.

Of the estimated 47 million Americans without health insurance, more than 28 million are small-business owners, their employees and dependents, Cazayoux said.

In the last eight years, the cost of health insurance has increased by 129 percent, Cazayoux said, and small businesses pay an average of 18 percent more for the same health-care benefits as large corporations.

The SHOP Act would include tax credits for small businesses that pay at least 60 percent of the cost of their employees’ premiums — up to $1,000 per employee and $2,000 for family coverage.

Self-employed workers could receive a tax credit up to $1,800 or $3,600 for family coverage.

Cazayoux said the act has more than 45 co-sponsors and has received no opposition, to his knowledge.

Cazayoux was in Baton Rouge during a five-week congressional recess.