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Georgia Adopts Tax Policy To Help Small Business Provide Healthcare Insurance To Employees

Georgia has adopted a new tax policy in a further sign of the growing use of HSAs as a means of helping small employers provide healthcare insurance benefits.

Small employers purchasing high-deductible health insurance plans linked to health savings accounts and insurers offering those plans will receive tax breaks under legislation signed into law Wednesday by Georgia Gov. Sonny Perdue.

Under the measure, an employer with 50 or fewer employees that offers a high-deductible health insurance plan linked to an HSA will receive a $250-a-year tax credit for each employee enrolled in the plan.

To qualify for the tax credit, employers will have to spend at least $250 per employee annually on the coverage.

The legislation also exempts insurers from paying premium taxes on HSA-linked plans. The measure, H.B. 977, goes into effect Jan. 1, 2009.

The new tax breaks will allow more “small business owners to provide low-cost health insurance to employees and their families,” Gov. Perdue said in a statement.

Efforts in other states to provide the same sort of incentives continues despite strong resistance from state regulatory administrators.

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