Small businesses: Impacts of the Affordable Care Act

Q: I own a small business. Under the new Patient Protection Affordable Care Act, do I have to offer health coverage to all of my employees?

A: On October 1st, the long anticipated Affordable Care Act or what some refer to as Obama Care, was put into place.  As a small business owner, less than 50 employees, all of the changes may be confusing.

First of all it’s important to know that no employer HAS to offer coverage.

New online marketplaces were recently open for businesses.  These marketplaces are set up for employers to help their workers purchase health insurance.  The idea behind the marketplaces was to have the employers chip in a certain amount and then their employees could choose the health plan that best suits their needs and lifestyles.  For example, a younger single and overall healthy worker may choose less coverage with cheaper premiums.  On the other hand an older worker or someone with health concerns could purchase a more expansive plan.

In 2014, employers will be required to pick one plan for their workers to enroll in.  However, some states running their own marketplaces, will be entitled to full employee choice of any plans.  And according to healthcare.gov, “Some large businesses that don't offer coverage meeting certain standards may have to make a shared responsibility payment in 2015.”

At CPP, we pride ourselves on putting our Customer’s First.  And that means sharing information with you that is pertinent to running your business.  If you have any questions that you’d like us to answer, please submit them to us, and we will answer them in our blog.

For more information, please visit the HealthCare.Gov website.  Or if you have questions about the SHOP Marketplace for businesses with 50 or fewer employees -- Call 1-800-706-7893 (TTY users: 1-800-706-7915).  Hours: Monday through Friday, 9 a.m. to 5 p.m. EST.

Sources used to write this article:

https://www.healthcare.gov/do-i-have-to-offer-health-coverage-to-my-employees/
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/30/%3Fp%3D63297/
https://www.healthcare.gov/how-does-the-affordable-care-act-affect-me/
http://www.freedigitalphotos.net (Photo)