What Does the New Health Care Bill Mean for SMBs?
Posted by Shannon Suetos on March 23, 2010 in Uncategorized [ 1 Comment ]
With the health care bill before President Obama, small business owners should take note of provisions that they may need to make by 2014. The main point to consider is how you will set up your Small Business Health Options Program, or SHOP Exchanges. These exchanges allow small businesses to partner together and buy insurance.
Until 2014, SMB’s with 10 or less full time employees earning less than $25,000 will be eligible for a tax credit that is 35% of their health insurance costs. Once 2014 is upon us, businesses with less than 50 workers will be required to offer health care coverage or will be fined $750 a year PER FULL-TIME EMPLOYEE.
Although its 4 years away, getting a plan started now could help you from facing large fines in the future. New legislation can be overwhelming, but as a business owner it is your duty to understand all laws. Other provisions of the bill are as follows:
- Part-time employees would be counted toward the 50-employee minimum on pro-rated basis based on hours worked, bringing more small businesses into the group required to provide coverage.
- A “Cadillac” plan will cost more than $10,200 a year for individuals and $27,500 for family coverage and will be subject to a 40% tax on the portion of the cost that exceeds the limit.
This is just the beginning for all of us, so keep up to date on all new legislation and start getting ready for 2014–it will be here faster than you think.