Torrisi Votes to Reduce Health Care Costs for Small Businesses

State Rep. David Torrisi joined his colleagues in the Massachusetts House of Representatives this week in passing legislation that will trim $160 million from health care costs over the next 15 years, encourages providers and insurers to adopt alternative payment and care delivery models and provides relief for struggling small businesses.

This legislation will allow small businesses to reduce their “fair share” assessments by not counting employees who already have qualifying insurance coverage from a spouse, parent, veterans’ plan, Medicare, Medicaid, or a plan tied to disability or retirement against their head count for required employee insurance.

This change will ease the burden on small business owners who are at a significant disadvantage in trying to comply with a rule they cannot enforce. Currently, small and independent businesses face financial penalties because their part-time or seasonal employees have insurance from other sources, but state regulations are based in part on the insurance take-up rate of employers.  This language, supported by package and convenience stores, retailers, restaurants, staffing groups and other small businesses, will eliminate those financial penalties.

“In an already difficult economy, we must do all that we can to encourage small businesses in our state,” said Torrisi.  “By reducing health care costs and “fair share” assessments, small business owners will stay in our state, grow their businesses and keep our workforce active.”

In addition, this legislation provides for greater transparency and makes advances in consumer protection, health care cost growth targets, price variation, smart tiering, medical malpractice reform, workforce development, Medicaid, and administrative simplification.