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Committee approves small-business health‑care tax credit as amended; amendment added exchange coverage
Summary
The House Finance Committee passed House Bill 2550, 14‑12, after approving Amendment A3377 unanimously. Sponsors said the credit would help small employers offer affordable exchange coverage to employees; opponents objected to confining the credit to exchange plans.
The House Finance Committee voted to report House Bill 2550 (printer's no. 3403) as amended by Amendment A3377; the committee reported the measure by a recorded vote of 14 to 12.
Prime sponsor Representative Mazzocco introduced HB 2550 as a tax credit to help small employers (under 50 employees, per the discussion) provide health coverage for employees, saying the measure is designed to improve affordability after enhanced premium tax credits expired. "As many of you know, the enhanced premium tax credits ... expired this year," Mazzocco said, and she cited an earlier figure that 156,000 Pennsylvanians had left exchange coverage.
Chairman Samuelson offered Amendment A3377, which the staff summarized as (1) adding health coverage purchased "through the exchange" to the definition of qualified health plan (including dental plans offered through the exchange) and (2) streamlining related tax language. Committee members sought clarification about eligible business structures and whether dental or vision plans would be covered; staff and the chair clarified the amendment applies to health plans purchased through the state exchange (described in the record as "Penny") and that products sold through the exchange, including certain dental plans, are included.
Members debated whether to confine the credit to exchange products. Chair Griner said the restriction made her concerned the bill functions as a subsidy for the state exchange, calling it "more of a Penny bailout" in the record and announcing she would vote no on the underlying bill. Representative Venkat and others argued keeping the credit on the exchange simplifies administration for the Department of Revenue and improves transparency about plan characteristics; Venkat noted other states have handled the question differently but defended the exchange‑only approach as a practical initial step.
The committee approved Amendment A3377 unanimously and then voted to report HB 2550 as amended. The roll call recorded multiple "yes by designation" votes and a final tally of 14 yes to 12 no was entered into the record. The transcript does not include a fiscal note in the meeting record; members cited expected coverage impacts and the 156,000 figure but did not present a formal cost estimate in this session.
The committee adjourned with no further business.
