Obama: Health reform helps small business

WASHINGTON, Oct. 29 (UPI) -- President Barack Obama pitched healthcare reform to small-business owners Thursday, saying they stood to gain if proposed changes become law.

"Now, few have a bigger stake in what happens than all of you," Obama told members of the U.S. Chamber of Commerce, National Federation of Independent Business, and small business owners and organizations from across the country.

"Now, there is no doubt that this (House) legislation, and the legislation that's being drafted in the Senate, would benefit millions of small businesses," Obama said. "It's being written with the interests of Americans like you and your employees in mind."

He stressed that if owners they can keep their existing plans if they like them, but "what we will do is make the coverage you're providing (employees) more affordable" by providing a tax credit for up to 50 percent of the company's premium.

Healthcare reform also would end a practice of insurance companies using one person's illness to raise rates for everyone in the plan, Obama said.

For people and entities who can't afford health coverage, "we'll make it affordable for you," Obama said, through an exchange program that would pool small businesses "to gain leverage" when working with insurers.

"And with all that additional leverage, you'll be able to get better deals than you could have ever received on your own," Obama said.

But, he said, "nothing's free."

Businesses of a certain size that don't provide coverage for their employees may be required to contribute to premium costs, he said.

However, "90 percent of all businesses would be exempt from this requirement," the president said.

Last week, Obama announced initiatives that would raise caps on existing Small Business Administration loans and give smaller banks better access to Troubled Asset Relief Program funding to encourage more lending.