BILL REQ. #:  S-3680.2 

Read first time 01/17/14.   Referred to Committee on Health Care .

     AN ACT Relating to assisting self-employed small business owners adversely impacted by health insurance premium changes; adding a new section to chapter 82.04 RCW; creating a new section; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The federal affordable care act created numerous changes to health insurance products. Some small groups that purchased health insurance in 2013 have been adversely impacted by the increase in the premiums for the new insurance plans that meet all the requirements of the federal affordable care act. It is the intent of the legislature to provide some assistance to those self-employed small business owners, often known as groups of one, that have been adversely impacted by the premium increases with a transitional business and occupations tax credit.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.04 RCW to read as follows:
     (1) In computing the tax under this section, a credit is allowed for a qualifying purchase of small group health insurance by a self-employed business owner.
     (2) The credit may only be taken for qualifying purchases of small group health insurance made between January 1, 2014, and December 31, 2014.
     (3) Prior to claiming the credit the department must approve of the qualifying purchase of health insurance, and the department may coordinate with the office of the insurance commissioner for verification of the premium rates and available products, and may write rules to administer this program.
     (4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Qualifying purchase of small group health insurance" means a new insurance plan that was purchased by a self-employed business owner as a result of the federal affordable care act that was twenty-five percent over the previous health insurance premiums paid by the business owner and that no other health insurance policies were available with a less than twenty-five percent increase. The qualifying purchase credit amount is the amount of the difference between the previous health insurance premium payments and the new health insurance premium payments.
     (b) "Self-employed business owner" means a self-employed individual or sole proprietor as defined in RCW 48.43.005.

NEW SECTION.  Sec. 3   This act expires July 1, 2015.