HB 233: Small Business Health Insurance Pool

• Establishes a nonprofit small business health insurance pool administered by a 7-member board to provide group health plan coverage to eligible small employers with 2-9 employees, effective January 1, 2015.

• Creates three forms of financial assistance: premium incentive payments (for new employers), premium assistance payments (for eligible employees), and refundable tax credits (up to $100-$125 monthly per employee plus $40 per dependent, not exceeding 50% of premiums).

• Requires Commissioner of Insurance to register eligible small employers annually and allocate 60% of initial funding to premium incentive/assistance payments and 40% to tax credits; employers may not claim both types of benefits in same tax year.

• Authorizes Division of Medicaid to seek federal Section 1115 waiver to use Medicaid matching funds for premium assistance payments for income-qualified employees.

• Imposes penalties including fines up to $25,000, restitution with 10% annual interest, and criminal charges (larceny or fraud) for wrongfully obtaining payments or tax credits.