Obama's health care aid to small firms disappoints

[WestVirginiaRebel]

AP:

WASHINGTON (AP) -- Many small businesses struggle to afford health insurance for their workers, but a a new tax credit meant to help them seems to be turning into a disappointment.

Although opinion polls show the credit is one of the most popular ideas in President Barack Obama's health care law, only 170,300 businesses out of a pool of as many as 4 million potentially eligible claimed it in 2010, about 4 percent.

A recent government report found the tax credit time-consuming to apply for and not rewarding enough to be financially attractive.

That's put the Obama administration in the awkward position of asking Congress to help fix the problems by allowing more businesses to qualify and making it simpler to apply. But Republicans who run the House say they want to repeal what they deride as "Obamacare," not fix its flaws.

"They completely missed the target on this thing," Rep. Sam Graves, R-Mo., said of the tax credit. "I don't think expanding it is going to make any difference whatsoever." Graves chairs the House Small Business Committee.

It doesn't help the administration's plea that the biggest small-business lobbying group is a lead plaintiff asking the Supreme Court to overturn the Affordable Care Act. The National Federation of Independent Business isn't likely to spend much time tinkering with the tax credit or promoting it to members.

Small businesses represent the crumbling edge of the nation's system of employer-based health care. Only about 30 percent of companies with fewer than 10 workers offer health coverage, and they often pay more for insurance than large businesses. The credit, which once had support from lawmakers of both parties, was supposed to help businesses already providing coverage afford the premiums. Maybe it would even entice some to start.

"We agree it is not a panacea for all costs," said John Arensmeyer, founder of Small Business Majority, an advocacy group that supports the health care law and disagrees with the much larger independent business federation. The problem is all the negative publicity around the health care law has discouraged business owners from applying for the credit, he says.

"There has been more heat than light shone on this," Arensmeyer said. "There is no reason why small businesses shouldn't be taking advantage of this credit." About 770,000 workers were covered by the businesses claiming the credit in 2010.

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How about that they can't afford "free" care?