Small Business Healthcare Exchange: What You Must Know
The Patient Protection and Affordable Care Act (ACA), known to most of us as ObamaCare, beginning January 2014, will offer 4 new health plans through the Healthcare Exchange: Bronze, Silver, Gold, and Platinum. This page is dedicated to ObamaCare and Small Business. Click here to Compare Bronze, Silver, Gold, and Platinum Individual Plans. UPDATE: Mandate for group insurance extended to 2015.
Below is the most accurate up-to-date information available. However, since insurance providers and states are still trying to understand this new law, the information below is subject to change and we will be updating as details becomes official.
Why is the Healthcare Exchange Mandatory?
It is to accomplish two things: 1) Make small businesses competitive for hires, so that they might offer similar benefit packages as large corporations, 2) To offset the federal subsidies provided to individual coverage.
What businesses must provide coverage under the Healthcare Exchange?
Any business with over 50 full-time or full-time equivalent employees (2 part-time employees equal one full time employee). Click here to get a Small Business Overview.
If I have less than 50 employees and offer coverage do I get a credit?
Depends. If you have less than 25 employees who average less than $50,000 per year, you may receive up to a 50% tax credit if you contribute 35% of their premium.
Which has the least expensive premium?
Bronze should have the lowest monthly premium, however a larger company could actually have a lower monthly premium for a Silver plan than a smaller company offering a Bronze plan.
| Small Business Healthcare | Exchange Facts |
| Under 50 Employees | Not mandated to cover |
| Less than 25 employees | Tax credit up to 50% of employer’s contribution |
| Over 50 Employees | Must offer insurance or pay penalty |
| Max Premium | 9.5% of employee’s household income |
| Deductible | Maximum of $2,000/$4,000 (ind/fam) |
| Employer penalty for not offering insurance <50 FT employees | $2,000 per employee, minus 1st 30 employees |
| Employer penalty for not offering proper health coverage | $3,000 per employee |
Further Questions
To learn more about small business plans in your state call 800-930-7956 or contact Medicoverage.
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