State Representatives Jen Mazzocco, Arvind Venkat, and Steve Samuelson announced on May 11 that they are circulating a co-sponsorship memo for new legislation aimed at creating the Small Business Health Care Premiums Contribution Tax Credit.
The proposed credit would support small businesses that help pay for their employees’ health insurance premiums through a health reimbursement arrangement purchased via PENNIE, Pennsylvania’s official health insurance marketplace. The bill includes requirements to ensure the quality of the health insurance purchased and is modeled after similar laws in other states.
The lawmakers said this initiative follows the expiration of enhanced premium tax credits under the Affordable Care Act at the end of 2025. As a result, hundreds of thousands of Americans lost their coverage. In Pennsylvania alone, more than 130,000 PENNIE enrollees dropped their health plans for 2026. Many affected individuals are employees of small businesses unable to afford group health policies.
“We are in a full-blown affordability crisis, and this extends to the complex issue of healthcare,” Mazzocco said. “Without a solution from the federal government, we need to do what we can to protect Pennsylvania families, and this bill is an important step toward closing coverage gaps while keeping affordability top of mind.”
Venkat serves as both state representative and board member for PENNIE. He said his experience as an emergency physician influenced his work on this bill: “As an emergency physician, I have seen how affordable health insurance can make the difference in whether someone seeks care,” Venkat said. “This legislation will help our small businesses contribute toward the health insurance their employees need and help more Pennsylvanians obtain high-quality healthcare that fits their budgets. I look forward to working with Rep. Mazzocco and Chair Samuelson on this legislation.”
No additional details about next steps or legislative timelines were provided.
