Small Employers Health Benefits Program Act of 2005

The Small Employers Health Benefits Program Act of 2005 proposes creating a national health insurance program specifically for self-employed individuals and employees of small businesses with fewer than 100 workers. Managed by the Office of Personnel Management, the program would allow these individuals to access a variety of private health insurance plans similar to those currently available to federal employees.

For eligible citizens, this bill aims to make health insurance more affordable by using "community rating," which prevents insurers from charging higher premiums based on an individual's health history. Additionally, the bill provides a refundable tax credit to small business owners who pay for a significant portion of their employees' insurance costs, incentivizing employers to offer coverage. To keep the market stable, the government would establish a reinsurance fund to help insurance companies cover the costs of exceptionally expensive medical claims.