Bill details incentive for individual insurance

SBJ Staff

Posted online April 30, 2006 | 11:00 pm

A bill making its way through the Missouri General Assembly would provide an income tax deduction for individuals who purchase their own insurance, saving small-business owners from some of the rising costs of health care.

House Bill 1677 passed the Missouri House of Representatives April 24 by a vote of 144-0, followed by a first and second reading in the Senate last week. The bill is scheduled for a Senate committee reading Tuesday.

The bill would authorize a phased-in income tax deduction for health insurance premiums paid by individuals for themselves, their spouses and their dependents. A 20 percent deduction would go into effect this year. In 2007, the deduction would be 40 percent, and it would be 60 percent in 2008. The deduction would rise to 100 percent in 2010.

The National Federation of Independent Business – Missouri, a small-business advocacy organization, continues to work with legislators to push the bill through.

“With the cost of health-care insurance going up by double digits, this free-market approach to providing cost relief is very important to small-business owners in Missouri,” said Brad Jones, NFIB Missouri director, in a news release.

According to the NFIB, small businesses comprise 97 percent of Missouri’s business community, and they employ nearly half of the state’s work force.[[In-content Ad]]