• NASE Supports Bush Proposal to Expand Health Savings Accounts
• Democratic Leader Questions Bush’s Small Business Agenda
• Small Business Legislative Council Releases 2006 Agenda
• Member Poll: Looking Back at 2005

NASE Supports Bush Proposal to Expand Health Savings Accounts

Health savings accounts (HSAs) offer a less expensive alternative to health care for the self-employed, especially if expanded to include President Bush’s changes proposed in his State of the Union address. Last year, the NASE conducted a survey of micro-business owners’ access to affordable health care, and found that HSAs had popularity, particularly among those that are currently going without any health coverage now. In his address to the nation and subsequent budget proposal, President Bush called for the expansion of health savings accounts used in conjunction with high-deductible health plans. He suggested increases in HSA contribution limits and tax credits for those utilizing the plans, among other changes. Administration officials say that Bush plans on proposing $60 billion in tax breaks to encourage HSA/high-deductible health plan purchases. “Health savings accounts with high deductible health insurance plans provide an alternative way to finance health insurance, something no one should go without in this country,” said Kristie Darien, executive director of the NASE legislative office. “Making the changes the Administration suggested this week would encourage more micro-business owners to set up the accounts for themselves or their employees.” According to the NASE survey, which was conducted of micro-business owners with fewer than 10 employees, overall awareness and appeal of HSAs is high, although most don't take advantage of this option. More than 82% of respondents had at least heard of HSAs, and nearly 65% of those who are presently uninsured expressed high interest in establishing an HSA. Only 5.9% of respondents had already established an HSA account, a factor the NASE attributes to a lack of consumer education on the accounts. President Bush called for the expansion of the deductibility of health insurance used in conjunction with a health savings account. Instead of paying a high monthly premium for insurance, a low premium, high-deductible health plan is purchased. The HSA then acts as an investment account from which people can withdraw money tax-free for medical care. Furthermore, Bush pushed the idea of allowing individuals to keep these high-deductible health insurance policies without extra cost if they change jobs or start a business, a major concern for those thinking about going into business for themselves. The NASE plans to work with the Administration and Congress to promote the use of HSAs benefiting the self-employed and micro-businesses. For more information about the NASE’s legislative priorities, visit http://advocacy.NASE.org. Democratic Leader Questions Bush’s Small Business Agenda Nydia Velázquez House Small Business Committee Ranking Member, Rep. Nydia Velázquez (D-NY) stressed the need for access to affordable health care, targeted tax relief, and ensuring small firms in the Gulf Coast region receive immediate assistance in her response to President Bush’s State of the Union address. With nearly 60 percent of the country’s uninsured being small business owners or having a relative who works in one, Velázquez said she was most surprised that President Bush did not say more about association health plans (AHPs) in his national address. AHPs would allow small business owners to band together to purchase health insurance across state lines. In a statement, Velázquez stated the following concerns: “The President got it right in 2001 when he joined with bipartisan Members to support AHPs,” Velázquez said. “It is unfortunate that he has now walked away from this common sense solution, and rather than siding with small business owners, has instead taken the side of this nation’s big insurance companies.” “While this nation’s small business owners were sitting at home waiting to hear solutions about the rising energy and health care costs, and the increased cost of capital they are facing today – the President failed to provide any sort of answers to entrepreneurs’ most pressing issues,” Velázquez said. “President Bush has done nothing but offer small firms empty rhetoric over the past few years – and by failing to outline any sort of solutions for the problems that continue to plague our small firms, he has once again terribly missed the mark with this nation’s small businesses.” Congressional Republicans felt President Bush did, in fact, address small business needs when discussing health savings accounts and making permanent certain tax cuts. “I agree with the President that we must make the tax cuts permanent to continue to grow our economy and protect Americans from huge job-killing tax increases,” said Chairman of the House Small Business Committee, Don Manzullo (R-IL). “We must continue to seek more affordable health care options for our small employers and enact medical liability reform so they can keep providing health care coverage for their employees.” Small Business Legislative Council Releases 2006 Agenda The Small Business Legislative Council (SBLC), a working partner of the NASE, has released the following five top legislative priorities for 2006: Immigration reform – small businesses need a stable pool of labor to fill certain jobs. Product and service legal liability reform – broad-based relief from liability for products made, distributed, and sold as well as services provided. Promoting and protecting innovation – possibility of a flat research and experimentation tax credit to encourage more than a small number of small businesses to use it as well as intellectual property rights preservation. Comprehensive health care reform – provide small business and their employees with more options to lower the cost of health care. Estate tax relief – address the impact of the estate tax on small business. “While Congress left town at the end of 2005 with some ‘big picture’ items unfinished, it also left on the table several issues with small business ramifications,” said Peter Moran, Chairman of the Board of Directors of the SBLC. “We urge them to address those small business issues in 2006.” The NASE will continue to work with the SBLC to achieve advancements for micro-business owners in this country. Member Poll: Looking Back at 2005 With a new year ahead, many business owners take the time to evaluate the previous year and determine their business strategy for the year ahead. Tell the NASE how you your business fared in 2005 in this month’s online poll. Let the NASE know your opinions by visiting the MyNASE Web site at http://my.NASE.org/. Log in to your free MyNASE Web Account. If you have not set up an account, you can do so at http://my.NASE.org/ with your member number. Let your voice be heard in the association by taking this survey during the month of February.