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Mississippi Governor Haley Barbour: offers small business insurance plan

Mississippi governor Haley Barbour will ask the state's legislature to consider permitting small business owners to pool resources in order to increase their buying power when it comes to getting health insurance for employees. The proposal first came up during the summer when he was successfully re-elected to office.

Barbour's idea is to create the Mississippi Health Insurance Exchange which would allow small businesses to work together in order to secure lower rates for their employees' health insurance. Federal and state tax credits which are already available would be an asset for the exchange. Instead of making individual employers the administrators of their own plans, the state would become an administrator. This change would save money.

Another advantage of the plan is that employers who could not afford the costs of coverage could use the tax breaks to reduce their costs. Thus more workers would be able to secure insurance through their work. Currently, 500,000 Mississippians are uninsured and about 125,000 of them work for small businesses that do not offer health coverage.

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