Though not aimed at dentists specifically, provisions in the three different healthcare reform bills making their way through the U.S. Congress would impose new requirements on small businesses and offer them new tax credits in ways that could affect most dental practices.
First, in all three bills, individuals would be required to have health insurance or pay a penalty. Insurance companies could not deny coverage based on prior illness.
House -- three committees
According to an analysis by BusinessWeek, in a bill passed by three committees in the House of Representatives, all employers would have to offer health insurance to their employees if they have at least $250,000 in payroll, and they would have to contribute 72.5% of their workers' premiums (or 65% for family coverage).
If these employers don't offer the coverage, they would pay a payroll tax that slides from 2% for those with a payroll of $250,000, up to 8% for those with a payroll of more than $400,000. Small employers with low-wage workers would get a tax credit toward premium costs. The credit would not be available to employers with more than 25 workers or workers whose salaries average more than $80,000.
Senate HELP Committee
In a bill passed by the Senate Health, Education, Labor, and Pensions (HELP) Committee, employers with more than 25 workers would be exempt from the requirement to provide health insurance, BusinessWeek reported. Those with 50 or fewer workers who pay 60% or more of the workers' premiums would get tax credits for up to three years. Small businesses and self-employed workers could join statewide buying pools to negotiate lower premiums.
Employers who pay less than 60% of the premiums would have to pay a $750 penalty for each additional worker above the limit of 25 workers.
Senate Finance Committee
In the original draft of a bill currently being debated by the Senate Finance Committee, employers of 50 or fewer workers would not have to provide coverage, according to a report by the Academy of General Dentistry (AGD). Those with more than 50 would have to pay a fee for each employee who earns less than 300% of the federal poverty level.
Tax credits are available to qualifying small businesses for contributions to purchase health coverage for their employees. The full tax credit is available to small businesses with 10 or fewer employees whose employees have average annual wages of less than $20,000. The credit phases out for employers with more than 10 but fewer than 25 employees, as well as for employers whose workers have average annual wages between $20,000 and $40,000.
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