Small firms scrapping, scaling back health plans

AP/Yahoo News, November 18, 2009

Across the country, businesses already strapped by the economy to turn a profit are sacrificing or scaling back employee health insurance plans because of their escalating costs. The crunch has particularly hurt smaller employers, who have become a centerpiece in the debate over how to overhaul the nation's healthcare system, the Associated Press reports. Both the House and Senate versions would offer temporary tax credits to offset a portion of the health insurance costs for businesses with fewer than 25 employees and average wages of less than $40,000. Small businesses also could more easily shop for policies through a new health insurance exchange.


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