As a small business, you may qualify for tax credits that would make insuring your employees more affordable. Learn more about your rights, requirements and how healthcare reform will affect you.
How do I know if my business is considered “small?”
In most cases, a business is considered small if it has the equivalent of 50 full-time employees or less. In some states, this also includes self-employed business owners without an employee group. For more information about whether this applies to you and your state, speak with your broker, a Medical Mutual sales representative, or contact your state’s Department of Insurance.
Am I required to provide my employees with health insurance?
The Affordable Care act does not demand that employers provide their employees with health insurance.
The Employer Responsibility provision, which will require employers to offset tax credits given to employees purchasing individual coverage, only applies to businesses with 50 employees or more and does not go into effect until 2015. For more information, contact your broker, a Medical Mutual sales representative, or visit the United States Department of Labor website.
Can I receive tax credits for providing my employees with health insurance?
If you provide health insurance, your business has 25 employees or less and you pay average annual salaries below $50,000, you may be eligible for a small business tax credit that offsets your insurance payments by up to 35 percent (or 25 percent if you own a non-profit business).
In 2014, your small business tax credit could increase by up to 50 percent (or 35 percent if you own a non-profit business).
Learn more about how your business could benefit from small employer health insurance tax credits.
What should I keep in mind when I’m shopping for health insurance?
If your business has 2 – 50 employees, health insurance providers cannot deny you coverage based on the health of your employees or their spouses and dependents. Individual employees and their dependents may not be excluded from a plan due to preexisting medical conditions.
Insurers must sell you any small group plan that they’ve sold to other small business employers in your state.
If one of my employees gets sick, could I lose my small group plan?
No, your health insurance cannot be cancelled because a member of your small group became sick. As a policyholder, your insurance company must offer to renew your plan if you continue to pay your premium.
Does my group’s health status dictate the price of my plan?
Starting in 2014, the Affordable Care Act will prevent insurers from increasing premiums due to an employee’s health status or gender.
For more information on healthcare reform and your small group plan, speak to your broker or a Medical Mutual representative.