Kerry says tax break would help businesses afford health care costs

Suzanne Struglinski

Wednesday, May 12, 2004 | 9:22 a.m.

WASHINGTON-- Democratic Presidential candidate John Kerry said Tuesday he'd give small businesses a tax break to pay for health care costs.

He'd also allow small businesses to join the same health plan that covers members of Congress.

Kerry, unveiling his health care program this week during a four-state trip, pointed to a 50-percent increase in small-business health care costs since the Bush administration came to office in 2001.

"It is unacceptable and I have a plan to fix it," Kerry said in a Tuesday conference call from Louisville.

After meeting with small-business owners, Kerry said they're struggling with the cost of providing health care for their employees.

Under Kerry's plan, small businesses would get up to a 50 percent tax break to help provide coverage for low- and moderate-income employees. Businesses would also be able to buy into the same health plan as House members and Senators, which could lead to better prices, Kerry said.

Kerry wants the federal government to take over "catastrophic coverage," or cases that cost $50,000 or more, which could lead to a savings of $1,000 a year for a typical family.

He set a goal of 96.5-percent coverage for all Americans in three years, Kerry said.

The candidate's plan is expected to cost $653 billion over 10 years, according to the campaign.

Kerry is slated to visit Florida today and Arkansas on Thursday to discuss veterans' health care benefits and health care for families.

In response to the plan, the Bush campaign outlined Kerry's Senate voting record, highlighting times in 1996 when he said he offered a bill to give children health insurance, but he did not actually offer one until three months after making the claim.

"John Kerry has a history of talking up health care in election years, then dropping the issue once the votes are in," Bush-Cheney '04 spokesman Steve Schmidt said in a statement.