The United States has always been a country of innovators and entrepreneurs. A land where today’s idea is tomorrow’s best seller. Across the country we have small businesses that have been passed down from generation to generation. We have small businesses that share office space with the kitchen. We have small businesses that are striving to become big businesses.

This week, the Chairwoman of the Small Business Committee, Nydia Velazquez and I introduced legislation to make it a little easier for small businesses to provide health coverage. “The Small Business CHOICE Act” would allow small businesses to form insurance cooperatives, similar to risk pools. Eligible cooperatives would have a minimum of 100 small businesses or 5,000 employees.

Additionally, the bill offers a key incentive in the form of a refundable tax credit of 65% to small businesses that choose to join a cooperative.  The bill will also allow entrepreneurs to negotiate better rates for coverage for their employees and themselves.  Self-employed individuals could save up to $5,000 per year on health coverage costs. Other small firms could save more than 34%.

Right now only one-third of businesses with less than 10 employees offer health benefits. This bill tackles the two most significant challenges facing small businesses- the high cost of providing comprehensive health insurance and the volatility of premiums.

I have always believed that government should try and work with small businesses to succeed. This is a common sense, bi-partisan solution that will help small businesses.

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