Nonprofits seek health care reform subsidies
Small businesses, probably defined as those with 50 or fewer employees, might potentially receive some Congressional relief from health care costs, either through a tax credit or a subsidy, as part of legislation for health care reform. Because nonprofits are tax exempt, a tax credit will not benefit them. Therefore, only a subsidy would help nonprofits.
The Independent Sector, a national nonpartisan coalition of approximately 600 nonprofit organizations, is working to ensure that nonprofits, as employers, can benefit from health care cost relief provisions that might be included in health care legislation.
The National Council of Nonprofits, HANO's national affiliate, is also working for subsidies to support small businesses including nonprofits, rather than just tax-credits. NCN is actively following healthcare reform. Its May Policy News, included an explanation of the SHOP Act and its provision of credits for nonprofits. Since then, the 615-page draft Affordable Health Choices Act has proceeded to extensive mark up in the Senate Health, Education, Labor, and Pensions Committee. It incorporates favorable concepts from the SHOP Act. Read more about the most recent developments in NCN's June Policy News.
United Way of America, like many nonprofit groups, has not taken a position for or against any particular comprehensive health care reform proposal being considered by Congress or the Administration. However, United Way says some sort of comprehensive health care reform is necessary to meet its 10-year-goal of increasing by one-third the number of youth and adults who are healthy and avoiding risky behavior.
Independent Sector has asked nonprofits to weigh in on this issue if they choose by calling or emailing their federal representatives. IS recommends that nonprofits explain that a tax credit to offset employer-paid health care costs will not benefit charities and state that whatever version of health care reform Congress enacts, it should include a subsidy to help cover health care costs of small nonprofits.
