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October 26, 2009

Members of Congress Urge House to Include Nonprofit Aid in Health Bill

More than 40 members of Congress have signed a letter asking House leaders to ensure that the final health-care-overhaul bill offers relief to small charities that provide health insurance to their employees.

“For health-care reform to be truly comprehensive, it must include nonprofit employers and their employees,” says the letter, which Rep. Betty McCollum, Democrat of Minnesota, took the lead on.

The letter highlights the importance of the nonprofit workforce to the economy, and notes that current House proposals offer tax credits to help small for-profit employers offer insurance plans. (The credits would apply to income taxes, which charities do not pay.)

On the other hand, both Senate health-care bills, now in the process of being merged, provide help to nonprofit employers. The finance committee bill would provide credits for certain payroll taxes to charities with no more than 25 full-time-equivalent employees. The health, education, labor, and pensions committee bill would offer subsidies to both for-profit and nonprofit small employers.

“Every dollar nonprofit employers pay in higher insurance premiums is another dollar taken away from delivering essential food, shelter, clothing, and other vital services that people need in this devastating economy,” Tim Delaney, president of the National Council of Nonprofits, said in a statement.

“We hope that the White House will now step forward to join this growing chorus in the House and Senate who recognize that nonprofits are vital employers who cannot be left behind on health-care reform.”

More information is availalbe on the council’s Web site.

— Suzanne Perry

Monday October 26, 2009 | Permalink

Comments

1. I’d like to point out the difference between the Senate HELP bill and the Senate Finance bill in how they allow nonprofits to benefit from health reform.

   The Senate HELP bill provides more benefit to nonprofits from health reform. The Senate HELP bill treats nonprofits and for profits equally. It provides a direct subsidy to small businesses (50 or fewer employees) that offer their employees health insurance, regardless of tax status. The Senate Finance Bill would mean that nonprofits have to pay more for health insurance than for-profit businesses: for nonprofits, it provides a 25 percent credit from 2011-2013 and a 35 percent credit in 2013 and thereafter; for-profits would get a tax credit for up to 35 percent of their contribution to employees’ insurance premiums in 2011 and 2012. Once the insurance exchanges are in place in 2013, qualified small businesses purchasing insurance through the exchange can receive a tax credit for two years that covers up to 50 percent of their contribution.

   — Claudia Damon    Oct 27, 04:05 PM    #

2. I have medcine i cant buy my child needs health care cant pay fixing to take my house truck turn lights off it is bad need heip now uneploment ant nothing

   — Rickie Wade    Oct 28, 04:09 PM    #

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