Business Opportunities Weblog

April 20, 2004 by Dane Carlson | 1 Comment

Quicken: “For nearly two decades, the No. 1 problem for small business owners has been the cost of health insurance. Last year was no exception. In 2003, companies with fewer than 200 employees paid 15.5 percent more in health care premiums than they did in 2002, even though inflation crept up only 2.2 percent, according to an annual study by the Kaiser Family Foundation and the Health Research and Educational Trust. Many of the smallest companies — with fewer than 6 employees — saw even more crippling increases of 20 percent to 40 percent, says Jessie Brairton, manager of legislative affairs for the National Federation of Independent Businesses (NFIB). That makes this year’s good news about health costs both unusual and extremely welcome. First, there’s the fact that beginning this filing season, health insurance premiums are fully deductible for all small businesses, even unincorporated ones. That could shave hundreds off the typical sole proprietor’s 2003 tax tab. Next is the Health Savings Account (HSA), which Brairton describes as ‘a pot of gold for small companies.’”

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