The Affordable Care Act, which goes into effect in 2014, requires that all insurance companies offer insurance for patients and that all patients carry some type of health insurance. Many business owners are currently debating the pros and cons of the healthcare reform act, in part because it will affect the finances of many different companies, especially small businesses.
Small businesses as a title typically refers to companies with fifty employees or less. The Small Business Health Options Program is available to those with up to fifty employees, and these companies will have access to reduce cost health insurance for employees. Insurance companies typically offer lower rates for employers with a larger number of employees, but this program will help smaller companies pay for insurance without spending a lot of money. In 2016, the program will expand to include companies with more than 100 employees.
According to the Kathleen Sebelius and Karen Mills, healthcare reform might have some benefits for owners of small businesses and their employees. Employers who opt for small business healthcare will have access to a tax credit that lets them deduct up to 35 percent of the total amount they pay for employee coverage. Through the SHOP program, employers also have the opportunity to compare prices and benefits of different plans to ensure they make the best decision for their workers. An estimated twenty million people work for small businesses, and with healthcare reform, many of those workers will gain access to affordable healthcare.
Prior to the implementation of the Affordable Care Act, insurance companies could deny coverage to those with certain preexisting conditions, but the new healthcare reform requires that companies offer coverage even to those who had medical problems in the past. With the SHOP program, small businesses can access healthcare through something called the marketplace. The federal government announced the marketplace as a way for small businesses to better afford products that employees need. Healthy employees are less likely to extended time off, call in sick, or be less productive at work. The program will also include a sliding scale fee for some employees, which helps those who make less afford the products they need. Small business healthcare will require some changes to finances at the end of the year, but the Affordable Care Act will also reduce expenses caused by sick employees.
When an employee comes to work with a simple cold, that person can spread the illness around to other employees, interfering with the way you do business. The newest healthcare reform will let employees seek help when they're ill, and your workers won't worry about how they can afford a visit to the doctor. With the new healthcare reform act, you'll have access to programs and services that your company can afford.
(Photo courtesy of marin / freedigitalphotos.net)
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