Small business says stop the HIT - KPLC 7 News, Lake Charles, Louisiana

Small business says stop the HIT

LAKE CHARLES, LA (KPLC) -

Stop the HIT. That's the slogan behind a move aimed at repealing a part of the health care act some say would deal a bad blow to small business.HIT stands for health insurance tax and those against it say it would cost small businesses about $500 per employee per year if implemented in 2014.

Business Health Partners is a busy place where they offer occupational, medical and safety services. With 27 employees they are a small business.

 Director of Business Operations David Drumwright says increased insurance costs would make it harder.  "We hire new people and we try to offer insurance, but if it's going to cost us an increased amount of money to insure those, then it's going to be harder and harder," Drumwright said. "We're maybe not going to expand or make more job duties on each of our employees. I can see how a tax like that can definitely hurt our expansion plans,"said Drumwright.

Small business roundtables are being held in this congressional district to let people know about the movement to repeal the health insurance tax. Erin Davison with Business Health Partners agrees they should stop the HIT. "For us to decide whether we raise our rates to our customers or we lay off a person or two, it's a hard decision," Davison said. "We may lay off a person or two because we don't feel that we should have to increase our serviceable customer rates just to pay for something that was implemented by Congress," said Davison.

Renee Amar is the Louisiana Director of The National Federation of Independent Businesses. She agrees people need affordable health care, but do not think this is the way to go about doing it because the people that you need to get insured are small business owners. "They employ 55 percent of the workforce in the state. Roughly, probably 50 per cent of them provide health insurance to their employees.  The larger they get, the easier it is for them to do it. So, we think there are other ways that you could go about giving them access to that affordable care," Amar said.

Congressman Charles Boustany introduced legislation aimed at repealing the health insurance tax before it's implemented in 2014.

Today's event was hosted by the Southwest Louisiana Economic Development Alliance and the Stop the HIT Coalition.

For more information on the Stop the HIT movement click here.

Copyright 2012 KPLC. All rights reserved.

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