bizjournals: Bush vs. Kerry: Election '04

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Years of 20 percent-plus premiumj hikes have made it unaffordable for a growing numbefrof them, and insurers plan another double-digit increase next year. "I hate healtyh care," says Rochelle Balch, owner of RB Balch & a 10-employee computer serviced firmin Glendale, Ariz. "I hate it. I hate it. It's a majoer ripoff for small businesses." Both President Bush and John Kerry want to help smalk businesseslike Balch's insure their Bush would make health care more affordable by allowinf small businesses to pool their resources and buy coveragwe from national trade associations. Associationn health plans would be exempt from state coverage mandates.
Bush also would expanf health savingsaccounts -- tax-frede accounts to pay for medical expenses for anyone with high-deductible health insurance. Employers can contribute to theses accountsas well, and many businesses have incorporated HSAs into thei r health plans. HSAs "are awesome," says Frani Ciotola, owner of DaVinci Ristorantse in Columbus, Ohio. They help businesses save monegyon insurance, he says, and encourags people to make better decisions because they get to keep any moneyt they don't spend. Bush proposes giving smallo business owners a tax credit for contributions totheirr employees' HSAs.
The government would contributed $300 to the HSAs of low-incom Americans and give them a $700 income tax credit. Kerry'e plan is more extensive -- and He plans to pay for it primarily by rollingback Bush'sd income tax cut for individuals who earn more than $200,000. Unde Kerry's plan, small businesses would be eligible to buy healthb insurance from the same plan that covers members of Small businesses also could take a 50 percent tax crediyt for the cost of health insurance they provideto low- and moderate-incomd workers.
Kerry also calls for the federalp government to pick up 75 percent of the tab whena worker'd health expenses exceed $50,000 a This catastrophic coverage would cut health premiums by up to $1,00 0 a year for a family, he says. Balchn is willing to trade a tax hike for the wealthyu for health care help for small She says: "There's more of us that aren'tf rich than are."