PA HOUSE FINANCE COMMITTEE ADDRESSES HEALTHCARE ACCESS AND AFFORDABILITY FOR WORKING PENNSYLVANIANS

The following information was released by Pennsylvania House of Representatives, Democratic Caucus:

Pennsylvania House Democratic Caucus

Today, 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, many of whom lost coverage after enhanced premium tax credits under the Affordable Care Act expired at the end of 2025.

State Rep. Steve Samuleson, 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 cant 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.

Committee member and co-prime sponsor of the bill Rep. Jen Mazzocco, D-Allegheny, said that todays testimony illustrated that small businesses in PA and their employees have a right quality, affordable healthcare.

With no federal solution in sight, we need to act now at the state level and fill the gaps left by catastrophic ACA cuts, said Mazzocco. Our hardworking families shouldnt have to decide between their health and their wallets, and this bill is a step toward easing that concern.

Rep. Arvind Venkat, D-Allegheny, who is a co-prime sponsor of the bill and a practicing emergency physician, testified that action is needed now as the number of uninsured people in PA continues to rise and the specific need with small businesses not offering coverage to their employees.

With actions at the federal level making it increasingly difficult for Pennsylvania families to afford quality health insurance, we need creative solutions to ensure people are protected, said Venkat.

Providing small businesses with a tax credit for contributing to employees health insurance premiums would allow business owners to reduce their tax liability and offer the kind of competitive benefits that attract top-notch workers, while at the same time helping more families retain access to critical coverage.

Alex Halper, senior vice president of government affairs for the Pennsylvania Chamber of Business and 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.