© 2024 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

MI small businesses eligible for federal health care tax credits

WKAR Photo

By Kevin Lavery, WKAR News

http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-914069.mp3

East Lansing, MI – A new report by a national health care advocacy group finds more than 85 percent of small businesses in Michigan are eligible for federal tax credits to help pay for employee health insurance.

AUDIO:

The group Families USA says under the federal health insurance bill signed last March, more than 126,000 Michigan businesses qualify for tax credits ranging as high as 35 percent.

Deputy executive director Kathleen Stoll says that especially helps companies with fewer than 10 employees, who on average pay close to $350 more for individual insurance plans than firms with more than 50 workers.

"Small businesses pay more because they don't have the large size to leverage better prices as do large businesses," says Stoll. "And if just one worker becomes sick or has a pre-existing condition, rates can really go sky high."

But groups like the Small Business Association of Michigan say the program does little to address the heart of the problem...that the cost of coverage is just too high for a tax credit to lower the premiums to an affordable level.

Journalism at this station is made possible by donors who value local reporting. Donate today to keep stories like this one coming. It is thanks to your generosity that we can keep this content free and accessible for everyone. Thanks!