National Federation of Independent Business in Tennessee is looking to legislation and a new insurance product in the state to help small business owners provide health insurance for their employees.

The NFIB is working to push two bills through the Tennessee Legislature to help alleviate some of the financial pain of offering health insurance.

One bill would give small businesses a tax credit for continuing to offer insurance. As proposed, the bill would give a business $400 back on its franchise and excise tax bill. However, that number could be reduced once the overall cost of giving the credit is studied by government accountants and the bill goes through the committee process. A similar bill that gave North Carolina businesses a $250 tax credit in 2005 cost the legislature there $16 million.

The other bill would allow more small businesses to pool their insurance risk. By forming health group cooperatives, small businesses could spread their risk over a broader group and perhaps get lower rates on insurance. NFIB wants to give more flexibility to the current law as to who can form these pools. Businesses now must meet strict requirements and have been in association for five years before they can form a cooperative. The groups must be comprised of 1,000 employees or more or have 10 employers or more to join.

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