Nonprofits Not Included in Health Care Bill Subsidy

The Georgia Center for Nonprofits wants to make sure that its members know that small nonprofits are currently excluded from a credit given to small businesses that provide health insurance under proposed versions of the pending health care reform.

Nonprofits are facing many of the same problems as for-profit businesses in providing insurance to their employees. We want you to be aware that the final version of health care legislation could contain language preventing small nonprofits from receiving a subsidy for providing insurance.

The House health care bill has a provision that gives a tax credit to any business that provides health insurance to its employees, has fewer than 25 total employees, and has an average salary of under $40,000. But because the bill provides a tax credit, nonprofits that qualified as a small business would be unable to receive needed financial support.

The Senate HELP Committee bill, however, says that a small business would receive a direct federal subsidy to help provide employer-sponsored insurance. This subsidy would be available regardless of tax status, and would be available to nonprofits. With so many nonprofits facing major rate hikes each year, a subsidy to help provide insurance could make a major difference to many nonprofits.

You can contact your local members of Congress or state delegation by accessing their contact information here.

Georgia Center for Nonprofits
50 Hurt Plaza, Suite 845
Atlanta, Georgia 30303
(678) 916-3000
www.gcn.org