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Washington Watch
December 3, 2003
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Health Savings Accounts
Passed in Medicare Bill Will Self-Employed
A provision included in the Medicare overhaul
legislation passed last week could have a huge impact
on access to affordable health coverage for the
self-employed and micro-business owners. Health
Savings Accounts (HSAs) will allow individuals with
high deductible health insurance plans to save money
in a tax-free account for medical expenses.
HSAs are an expansion of Medical Savings Accounts, but
with more flexibility and fewer restrictions. HSAs
allow anyone with a health insurance plan with a
deductible of at least $1,000 ($2,000 for a family) to
open a savings account for medical expenses.
Contributions to the savings account can be as much as
the deductible (up to $5,000 or $10,000 for families),
and can be matched by an employer.
The account then grows tax-free. Withdrawals are also
tax-free as long as they are used for qualified
medical expenses such as for prescription drug costs
or long-term care services. Balances are carried over
each year.
In addition to HSAs, the NASE also supports
association health plans, health care tax credits and
the elimination of the payment of
self-employment tax on health insurance premiums
as ways to increase access to affordable health
coverage for the self-employed and micro-business
owners.
For more information on the state of health coverage
for the nation’s micro-businesses, read the
NASE Affordability in Health Care survey. Visit
the NASE
Legislative Action Center for more information on
other health coverage solutions.
SBA Temporarily Reauthorized
Late last month, the House and Senate both passed
a temporary reauthorization of the U.S.
Small Business
Administration and sent the measure to the President for
his signature. The bill,
S. 1895, extends the operations of the SBA through March
15, 2004.
By temporarily reauthorizing the federal agency, Congress
has more time to work on a complete reauthorization bill,
which includes changing some of the SBA programs. Washington
Watch will keep you posted on the progress of the
reauthorization (S.1375
and
H.R. 2808).
NASE Survey on Women Entrepreneurs
Receives Wide Coverage
The
NASE survey that found women entering the ranks of
entrepreneurship at twice the rate of men this year has
received considerable interest in the media since its
release three weeks ago. The NASE has been written about in
the
Chicago Tribune, the
Baltimore Sun's online publication, Business Journals
across the country, and numerous local publications like the
Beaumont Enterprise.
Among other findings, the survey shows that women
increasingly are taking stock of the broader job market and
economic climate and electing to set up shop -- often at
home -- in pursuit of more control, greater independence and
a better balance of work, family and community stewardship.
Let the NASE know if you see an article in your local paper.
Write to mpetron@nase.org.
Do any of these issues affect you? Do you want to be
proactive in helping the micro-business community? Visit the
NASE Legislative Action Center and be a
Micro-Business Crusader. Members of Congress appreciate
hearing from their constituents. Letting your members know how
you feel on an issue puts strength behind the NASE’s legislative
agenda.
For more information about any of the articles in
Washington Watch, contact Maureen Petron, NASE public
affairs manager, at (202) 466-2100 or
mpetron@nase.org.
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