/PRNewswire-USNewswire/ -- Just days before the election, President Barack Obama dropped a comprehensive plan to stimulate the middle class economy by stopping the diversion of federal small business contracts to corporate giants. The plan was drafted over the course of three months by dozens of small business experts around the country who had been invited to serve on President Obama's small business advisory panel.
The plan included a number of policies that would have redirected up to $100 billion a year in federal small business contracts back to legitimate middle class firms around the country.
Since 2003, a series of over 15 federal investigations found Bush Administration officials allowed billions of dollars in federal small business contracts to be diverted to Fortune 500 firms, their subsidiaries and thousands of large businesses in the United States and Europe.
A report issued by the Small Business Administration (SBA) Office of Inspector General (OIG) referred to the diversion of federal small business contracts to large businesses as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.sba.gov/IG/05-15.pdf)
President Obama responded to the investigations in February of 2008 with the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The plan included support for a new piece of draft legislation written by the American Small Business League (ASBL) titled the Fairness and Transparency in Contracting Act. The new legislation would prevent government contracting officials from awarding small business contracts to Fortune 500 firms and other large businesses. The ASBL estimates the new legislation would provide a dramatic boost to the nation's failing economy by redirecting up to $100 billion a year in federal infrastructure funds to middle class firms.
As opposed to other stimulus plans that could cost taxpayers hundreds of billions of dollars, the Fairness and Transparency in Contracting Act would be virtually free to taxpayers.
In December President Obama's transition team stated that up to 40,000 jobs could be created with every billion dollars spent on federal infrastructure projects. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html?_r=1) If calculations by President Obama and the ASBL are correct, the Fairness and Transparency in Contracting Act could create over 4 million new jobs at virtually no expense to taxpayers.
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Thursday, January 29, 2009
Obama Dropped Small Business Stimulus Plan Days Before the Election
Monday, January 19, 2009
Is Your Business Ready for the COBRA Premium Subsidy?
/PRNewswire/ -- As the unemployment rate grows, so do the numbers of unemployed workers and their families who are coping with the loss of health insurance. COBRA continuation coverage can offer critical (albeit small) peace of mind, but while many workers have the right to purchase such coverage, only about 20% actually opt in because the cost is often prohibitively high. A November 2008 study by non-profit advocacy group Families USA reports that COBRA premiums average $388 per month for individuals, and $1,069 for family coverage (view the whole report at http://www.familiesusa.org/assets/pdfs/cobra-2009.pdf ).
As if there weren't enough administrative duties associated with COBRA administration, hold on to your business hats: As part of the $825 billion economic recovery bill unveiled last week by House Democrats, people who lost their jobs after September 1, 2008 could have the government pay almost two- thirds of their health insurance premiums. The length of the subsidy would be 18 months, equal to the maximum amount of time employees can carry COBRA from their former employers. With events such as divorce, separation, or death, the time period is extended to 36 months. In effect, this offers a second chance to people who may have passed on the offer the first time. It appears that President-Elect Obama backs the idea, so it looks like the bill will pass.
Except for federal and certain religious organizations, all employers with 20 or more employees are required by law to offer COBRA. Not only must they must send notices within 90 days to any employee beginning coverage or within 44 days within ending health benefits, you must be able to prove it. There are stiff penalties for failing to comply, and the DOL makes changes regularly. An estimated 80% of companies are already not in compliance with Federal COBRA regulations. Are you?
Mangrove's full-service benefits administration is streamlining HR departments across the country. Organization of all sizes are taking advantage of our flexible, personalized affordable offerings for COBRA, keeping them compliant and aware of the various ever-changing regulations. In light of this new subsidy, more companies than ever will be looking to outsource their COBRA administration to be compliant. Aside from a low price, the peace of mind is priceless. Avoid the rush; talk to a Benefits Specialist at Mangrove today to see how we can help you, or visit us at http://www.emangrove.com/cobraadmin.aspx to check out our full service offering.
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