March
21, 2018 at 12:00 pm
The Patient Protection and Affordable Care Act,
sometimes called ACA, the health care act, or ObamaCare, is a federal statute
signed into law in 2010. The Affordable Care Act includes a
variety of provisions that reform the insurance market pertaining to small
businesses and employee health insurance. A number of changes relating to
small businesses are outlined in a document published
by the U.S. Department of Health and Human Services. Small business owners
with 50 or fewer full-time (or equivalent) employees should be aware
of SHOP, the Small Business Health Options
Program.
It provides quality health and dental coverage with a tax credit
for small businesses that register in SHOP. From January 1,
2018, this registration must be via a private insurance company. Prior to
2018, small business owners were able to shop online for a group plan via Healthcare.gov.
While small business owners can still research and compare plans on the
government website, they will need to use an agent or broker, or go direct to a
provider for their group plan.
Year-round enrollment
The enrollment process for SHOP changed at the start of 2018.
Unlike the individual enrollment period for individuals, SHOP enrollment
is open year-round. The changes affect plans in effect starting January 1,
2018, or later. To help employees understand the coverage, employers must provide a summary to explain benefits and coverage as
well as costs. Employers who offer health insurance to their eligible employees
are obligated to offer that coverage within 90 days of the employee’s start
date.
Incentives for employers
Incentives up to 30 percent of health care coverage costs are provided by the ACA to assist employers
in creating healthy workplaces and wellness programs. Up to 50
percent is provided to support workplace programs that prevent or reduce
tobacco use.
Payments and credits
The IRS points out that small employers may be able to put some
money in their pockets via tax credits. Small business owners who cover at
least 50 percent of the full-time employees’ premium costs, and who have fewer
than 25 full-time employees, may be eligible for a Small Business Health Care
Tax Credit. More details about the benefit and who may
qualify are found on the IRS website.
Reporting by employers
The IRS requires that
the following organizations are obliged to report that they provide health
coverage:
·
Employers with 50 or
more FTEs
·
Health insurance
companies
·
Self-insuring
employers of any size
This article was written by Laurie Jo Miller Farr for Small Business Pulse
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