PA House Finance Committee addresses healthcare access, affordability for working Pennsylvanians

HARRISBURG -- The PA House Finance Committee held a public hearing on legislation that would establish a new tax credit for small businesses that contribute to their employees' health insurance premiums.

House Bill 2550 would address affordability and accessibility of healthcare insurance plans for working Pennsylvanians.

State Rep. Steve Samuelson (D-135th), chair of the House Finance Committee and a co-prime sponsor of the bill, said that many small businesses cannot afford to provide group health insurance policies.

"Too many working Pennsylvanians are foregoing health insurance if they can't access it through their employer," Samuelson said. "This effort would incentivize small business owners to help their employees by allowing them to claim a tax credit for their contributions. It would keep business moving by keeping employees and their families healthy, reduce leave time due to illness, and give peace of mind to workers with access to quality healthcare."

Alex Halper, senior vice president of government affairs for the Pennsylvania Chamber of Business & Industry, and Dr. David Anderson, assistant professor, Department of Health Services Policy and Management, School of Public Health, University of South Carolina, also testified to how other states are addressing the issue of uninsured workers and how best to ensure health coverage for as many Pennsylvanians as possible while not forgetting the needs of small businesses.

The bill provides that tax credits could be issued only for plans purchased via Pennie, Pennsylvania's health insurance exchange authority. If an employer chooses to participate in the tax credit program, they would be required to make equal contributions to all employees with eligible health insurance costs. This would apply to small businesses with less than 50 employees and would be subject to the personal income tax.

Samuelson said the bill could be scheduled for a committee vote as soon as early June.