MS HB904

Establishes a nonprofit small business health insurance pool administered by the Commissioner of Insurance with a seven-member board of directors to provide group health plan coverage to eligible small employers with 2-9 employees effective January 1, 2012.

Creates premium incentive payments for small employers and premium assistance payments for employees, plus tax credits up to $100-$125 monthly per employee (based on group age) and $40 monthly per dependent, not to exceed 50% of total premiums paid.

Requires 60% of initial funding for premium incentive and assistance payments to employers newly offering health insurance and 40% for tax credits to existing group plan sponsors; allows funding transfers between categories based on participation levels.

Mandates Division of Medicaid to pursue Section 1115 federal Medicaid waivers to provide federal matching funds for premium assistance payments to eligible low-income employees.

Imposes penalties up to $25,000 for violations including wrongfully obtaining payments or tax credits, with fines deposited into a special fund for program administration and new small employer health insurance assistance initiatives.