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Healthcare bill would bring fees

March 22, 2010

The U.S. House of Representatives approved a healthcare reform package on Sunday that could add fees for employers who don't provide healthcare.

The House's vote approved the Senate healthcare reform bill as well as measures to modify that bill. Those changes must still receive approval by the Senate.

Under the Senate bill, businesses with more than 50 employees that do not offer insurance could pay $750 per year, pro-rated by month, per full-time employee. That fee would not apply if at least one of a firm's employees receives a government tax subsidy to buy health insurance. A full-time worker is defined as one who works at least 30 hours per week. The fees would take effect in January 2014.

Firms that do offer health insurance to some employees may still have to pay a fee should even one employee get a tax subsidy to buy health insurance, under the Senate bill. A firm would have to pay $3,000 per subsidized worker or, alternatively, $750 per all full-time employees -- whichever is less.

A Senate bill amendment championed by the American Staffing Association clarified that a full-time worker is a person who works an average of 30 hours per week per month. That means a staffing firm would only pay one twelfth of $750 for each employee who works an average of 30 hours per week throughout an entire month.

However, the healthcare reform package approved by the House would raise the $750 fee to $2,000.

The Senate must approve the House's package before the $2,000 would take effect. If the Senate makes any changes to the package, it would return to the House for approval.