Self-Employed Provisions MIA From Health Care Proposals
Aug 23rd, 2009 | By Dawn Rivers Baker | Category: Politics & PolicyThe National Association for the Self-Employed (NASE) is getting a little hot under the collar about proposals for health care reform. Or, to be more specific, they are perturbed by the lack of help for the self-employed to be found in those proposals. Although policy makers understand that small business stakeholders are deeply engaged here, what the self-employed will get from reform seems fairly minimal. As NASE executive director Kristie Arslan put it, “With close to 23 million Americans taking care of their families and creating jobs through self-employment, Congress would be wise to pay attention to the needs of this growing demographic.”
First and foremost, as far as the NASE is concerned, the reform proposals have ignored what has become their signature issue: allowing Schedule C filers to deduct health insurance premiums as a business expense for the purpose of calculating self-employment taxes. Another item on the NASE list is expansion of Health Reimbursement Arrangements (HRAs). An HRA is a flexible and tax-deductible arrangement where companies reimburse employees for their out-of-pocket medical expenses, including health insurance premiums. Unfortunately, to quote the Internal Revenue Service, “self-employed persons are not eligible for an HRA.” It is still possible for one or both of these items to be offered as amendments when either the House or the Senate bills come to the floor in their respective chambers. All things considered, however, I wouldn’t hold my breath.
