Washington, DC – Congresswoman Claudia Tenney (NY-24), a member of the Ways and Means Committee, today announced that her bill, the Small Business Flexibility Act, passed the full Ways and Means Committee during a markup hearing by a vote of 36-3.
H.R. 3798 amends the Internal Revenue Code of 1986 to ensure small businesses and employers are better informed of flexible health insurance options they can utilize to expand access to coverage for their employees and lower healthcare costs.
“As the owner of a small manufacturing and printing company, I have experienced firsthand the negative effects Obamacare has had on driving up healthcare costs for Mainstreet businesses. This has hurt the ability of small businesses to provide employees with quality insurance options at an affordable price,” said Congresswoman Claudia Tenney. “Unfortunately, up to 70% of small businesses are unaware of programs and credits at the federal level that they may be able to use to help defray the costs of providing a wider range of health insurance options to their employees. The Small Business Flexibility Act is a crucial step toward addressing this knowledge and utilization gap. The bill requires the Treasury Department to actively inform small businesses about the range of flexible coverage options available to them to increase utilization. I am pleased that this bill passed the Ways and Means markup today, and I will continue to advocate for its passage by the full House.”
“Small businesses have access to a variety of flexible health benefit policies that allow workers and employers to find the right health care coverage that fits their needs,” said Ways and Means Committee Chairman Jason Smith. “Unfortunately, there is confusion about what options are available and uncertainty surrounding the permanency of these flexible arrangements. Representative Tenney’s bill, the Small Business Flexibility Act, will require the Treasury Secretary to notify small businesses about the tax-advantaged health benefit options that are available to them and their employees. This effort will help break down barriers so small businesses can fully utilize benefits.”
Congresswoman Tenney delivered the following remarks during the committee markup, which can be watched by clicking the link here.
Thank you, Chairman Smith and Ranking Member Neal, for holding this markup and for including The Small Business Flexibility Act.
Under Chairman Smith’s leadership, this Committee has made it a priority to hear directly from the American people through our field hearings. And whether we’re in West Virginia, Oklahoma, New York, or Georgia, we hear similar messages. Among them is that health care costs are out of control, especially for small employers.
Since Obamacare’s mandates in 2014, health insurance premiums have gone up 130 percent, and deductibles have increased by 125 percent.
My own small printing and manufacturing business in Upstate New York has experienced these rising costs firsthand, threatening our ability to continue to provide our employees with high-quality benefits.
And we’re not alone: since the enactment of Obamacare, the percentage of small firms providing health insurance has decreased from almost 45% to 31% today. In addition, 75% of businesses with fewer than 200 employees now only offer ONE healthcare plan.
Our small businesses want to provide for their employees. They want to offer competitive benefits packages that promote choice in the marketplace while prioritizing quality and affordability. The problem is that they simply cannot afford the costs.
Just look at the experience of my constituent, Ted Vennette, the owner of Design Concepts in Central Square, New York.
Before Obamacare, Design Concepts provided health insurance to their 38 employees with a weekly premium and deductible of just $20 each. Now, the premium has soared to $120 per week for his workers, and the deductible is an astonishing $2,600.
My family business has experienced similar financial pressures. We currently pay $27,000 per year for each of our employee’s family plans, which now cost more than ever and have smaller networks than the range of plans we had available before Obamacare.
We should not accept this as the status quo, and thankfully there are commonsense solutions that can help small businesses lower costs and increase choice. For example, Small Business Health Care Tax Credits can provide small businesses with fewer than 25 employees assistance in covering up to 50% of the cost of a qualified health plan for two years.
Qualified Small Employer Health Reimbursement Arrangements can also help by allowing small businesses with fewer than 25 employees to provide tax-exempt, defined contributions to their employees. There are also Individual Coverage Health Reimbursement Arrangements that allow employers of all sizes to help their employees purchase the health insurance of their choice on the individual market.
Unfortunately, recent surveys have found that 70% of small businesses are not aware of flexible opportunities like these that can help them affordably provide health insurance as a benefit to their employees. The Small Business Flexibility Act seeks to close this awareness gap by requiring the Treasury Department to notify and educate small businesses on the various flexible coverage options available to them.
Small employers want to provide these benefits to their employees to not only retain them but to ensure they have a high quality of life. It is time that we increase awareness of these programs and address any obstacles to their successful and effective implementation. I, therefore, urge you all to support the Small Business Flexibility Act.
I yield back.
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