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
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