HR3590 Health Care Bill & Government Health Insurance

In a previous post, we shared with you that the National Federation of Independent Business (NFIB) has joined a lawsuit against the health care reform law spearheaded by several states. Small businesses view the law as unconstitutional and “bad for business”. Federal officials, however, are saying that small businesses are actually eligible for more than what they thought under the new law in terms of tax credit provisions, according to a feature on ModernHealthcare.com.

The Treasury Department, according to Treasury assistant secretary for tax policy Michael Mundaca, has issued new guidance that indicates that small businesses are eligible for state and federal tax credits. Mundaca explained the guidance at a teleconference, clarifying that small businesses can receive the credit for traditional health insurance as well as for add-on dental, vision and other limited-scope health insurance coverage. As many as 4 million small businesses may be eligible for tax credits starting this year; businesses, however, will not be able to receive the credit until after they have been able to file their taxes in 2011.

Dan Danner, president and CEO of NFIB, said the following through a written statement: “Small-business owners everywhere are rightfully concerned that the unconstitutional new mandates, countless rules and new taxes in the healthcare law will devastate their business and their ability to create jobs.”

The guidance was released days after NFIB joined the lawsuit against health care, and Small Business Administration administrator Karen Mills said that most small businesses “are excited about this tax credit.”