Articles

The Affordable Health Care Act and Your Business

It is hard to believe the Affordable Care Act was first introduced in 2009. Over the last 3 years it has been debated, debunked, ultimately passed and signed into legislation, and later upheld by the Supreme Court. With President Obama’s re-election, it is likely to remain on the books and both consumers and business will begin to feel its impact over the next 12-18 months.

As consumers, you are probably aware of some of the immediate changes that were put in place—your children can remain on your health insurance until they are 26 years of age, lifetime maximums were eliminated, pre-existing conditions for children are no longer impediments to getting insurance.

But many of the aspects of the ACA come into play over time and it is important to find out the impact on you as a small business owner.

Here are a few things to keep in mind:

• If your company has less than 25 employees, your average annual wage is below $50,000, and you provide health insurance, you may qualify for a small business tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance. This will bring down the cost of providing insurance. Starting in 2014, this tax credit increases to 50% for qualifying businesses.
• In 2014, small businesses with fewer than 100 employees can shop in an Affordable Insurance Exchange, which gives you power similar to what large businesses have to get better choices and lower prices. An Exchange is a new marketplace where individuals and small businesses can buy affordable health benefit plans. Beginning in 2014, members of Congress will be getting their insurance through these Exchanges, as well.
• Employers with fewer than 50 employees are exempt from new employer responsibility policies. There is no an assessment to pay if their employees get tax credits through an Exchange.

There are many resources online to get more details on your responsibilities and benefits pertaining to the Affordable Care Act. Check out www.healthcare.gov to get started and watch this video:  http://www.healthcare.gov/videos/2010/06/small-business.html for an overview.

Best advice to share: Stay Healthy and Practice Preventative Medicine! All the best for a Healthy 2013!!

Submitted by Adrienne Kelly Lumpkin, Public Policy Committee