Max Baucus: “I wish to say a few words about how much this underlying legislation helps small business. We hear a lot of claims to…”

“I wish to say a few words about how much this underlying legislation helps small business. We hear a lot of claims to the contrary, and I wish to set the record straight. Essentially, small business people in America today spend about 18 percent more than the large businesses for the same health care coverage. Why is that? Because of high broker fees--small businesses have to buy insurance through brokers--because administrative costs are higher for them compared to big businesses, and adverse selection hurts them much more than big business. There are a lot of reasons why small businesses pay 18 percent more for health care than big business. This legislation contains $37 billion in small business tax credits-- $37 billion in small business tax credits--most of which go into effect this year, not later but this year, tax credits for a businessperson who wants to offer health insurance for his or her employees. Add to that insurance reforms, which are very much going to help small business.”