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SD 390

An Act relative to small business health insurance incentives

194th Legislature (2025-2026) Introduced by Jamie Eldridge and 1 co-sponsor

Massachusetts bill creates tax incentives for small businesses to offer employee health insurance coverage, expanding access to employer-sponsored plans.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 390

Legislative bill overview

SD 390 creates tax incentives and support mechanisms to encourage small businesses in Massachusetts to offer health insurance coverage to their employees. The bill aims to make health insurance more affordable and accessible for small business workers by providing credits, deductions, or other financial incentives to employers who establish or maintain group health plans.

Why is this important

Small businesses often struggle to offer competitive health benefits due to high administrative costs and limited bargaining power with insurers, making it difficult to attract and retain quality employees. By reducing the financial burden through targeted incentives, the bill could expand health insurance coverage to workers in the small business sector, potentially improving health outcomes and worker security while addressing a significant gap in employer-sponsored coverage.

Potential points of contention

  • Cost to the state – Tax credits and incentives require public funding; lawmakers may debate whether the expense is justified and how it affects the state budget
  • Definition of "small business" – The threshold for which businesses qualify (employee count, revenue) will determine how broadly benefits are distributed and whether mid-sized firms are excluded or included
  • Incentive design – Questions about whether credits should be refundable, what percentage of premiums they cover, and whether they adequately address affordability for both employers and employees

Compiled from official sources — confirm details with the bill’s official record.

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