Massachusetts bill cuts small business insurance costs

The Massachusetts Senate has passed a bill aimed at cutting health insurance costs for small businesses.

The bill allows companies with 50 or fewer workers to form cooperatives, helping them purchase health insurance at lower costs. It also requires insurance companies to justify any hikes in premiums.

In addition, the legislation contains a provision that requires wealthier hospitals to make a $100 million contribution to insurance carriers, which could lower premiums by 2.5 percent in the short term.

Small business would also be encouraged to create wellness programs to keep workers from getting sick.

The bill now moves to the House for consideration.

The high cost of insurance in the state had been a major concern to small business owners in the state. The Cape Cod Times reports that a survey by the Retailers Association of Massachusetts found that its members had expected costs to go up this year if legislation wasn’t passed.

Massachusetts lawmakers have recently proposed a number of regulations aimed to help existing small businesses and encourage entrepreneurs interested in forming a company. State treasurer Timothy Cahill and Governor Deval Patrick have both proposed small business tax cuts to help create jobs.ADNFCR-3052-ID-19793893-ADNFCR

Melissa Clark
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Melissa Clark

Head of Content & Customer Marketing at Incfile
Melissa sets the vision for Incfile's content marketing and customer relationship management. Melissa has more than 10 years experience in various marketing roles, and a passion for supporting small businesses as they incorporate and grow. She loves sharing information that will help business owners maximize their LLCs, Corporations and Nonprofits. In her spare time, Melissa is an active member of The Junior League and enjoys running half marathons.
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