House Bill 175 Summary

• Creates a nonprofit small business health insurance pool administered by a 7-member board of directors appointed by the Commissioner of Insurance and Governor to provide group health plan coverage for eligible small employers with 2-9 employees.

• Establishes tax credits of up to $100-$125 monthly per employee and $40 monthly per dependent (maximum 50% of premiums paid) for eligible small employers providing group health insurance coverage to employees.

• Provides premium incentive payments and premium assistance payments to eligible small employers and employees who obtain coverage through the purchasing pool or qualified association health plans, funded through a special state treasury account.

• Requires eligible small employers to register annually with the Commissioner and meet criteria including no delinquent state income taxes, no employee earning over $75,000 annually, and provision of group health plans complying with specified benefit requirements.

• Allows Division of Medicaid to seek federal Section 1115 waiver to obtain matching funds for employee premium assistance payments and establishes penalties including fines up to $25,000 and criminal prosecution for fraudulent claims.