By J. Lyn Carl, GalleryWatch.com
Austin, TX – - Because two million working Texans do not have health insurance, Sen. Kip Averitt (R-Waco) today filed SB 10 in an effort to make offering affordable health insurance easier for Texas businesses.
The fundamental problem that keeps small Texas businesses from offering health insurance coverage for their employees is affordability, said Averitt in a press conference today. "The primary obstacle is cost. They simply can't afford it."
Averitt said his legislation will allow small businesses to come together to purchase health insurance in large groups, providing for economics of scale and tax breaks for the employer.
The Waco Republican said his legislation is aimed at giving underwriters a 2 percent tax credit on new lives insured - those who have never had health insurance before. He said the legislation also is aimed at providing "maximum flexibility" in a test phase for co-ops.
Supported by the governor and lieutenant governor, the legislation also is finding support in the business community, said Averitt. By forming an alliance, small businesses can act as one large business to be able to offer significant tax breaks while "working toward a common goal of insuring more Texans."
Sen. Leticia Van de Putte (D-San Antonio), said the goal of the bill is to decrease the number of uninsured working adults in the state. "It's about access," she said.
Van de Putte said if more Texas workers do not have health insurance benefits, the cost of paying for their health care - many times high-end costs because they go to emergency rooms for care - will continue to fall on the shoulders of Texas taxpayers.
Rep. John Smithee (R-Amarillo), has filed HB 1086, a companion bill in the House. He called the bill "common sense legislation" whose goal is "to make health insurance more affordable."
Bill Hammond of the Texas Association of Business said health insurance is the number one issue for most Texas businesses, noting 25 percent of Texans do not have health insurance - 75 percent of whom are employed.