Depending on the estimate, 4% to 12% of small businesses eligible for health insurance tax credits claimed them in 2010, according to a new report.
The tax credit was included in the Patient Protection and Affordable Care Act to induce small businesses to offer health benefits but failed to do so, the Government Accountability Office said. “According to employer representatives, tax preparers and insurance brokers the GAO met with, the credit was not large enough to incentivize employers to begin offering insurance,” said the GAO. Employers also found the credit too complex, the GAO said. The credit was not enough of an incentive to make up for the time and cost required to apply, according to the report.