When it comes to running a small business, health care costs often top the list of financial concerns. When the Patient Protection and Affordable Care Act of 2010 (ACA) goes into effect in 2014, businesses with more than 50 full-time employees will be legally required to spend this money.
There has been much opposition to the ACA in the small business community for this reason. But a recent survey results suggest that small business owners are also unaware of the law’s potential benefits.
For starters, even if a small business is exempt from the law, it can take advantage of the changing health insurance industry. Insurance carriers are already preparing for 2014, according to MainStreet. They’re rolling out new plans with high deductibles and more options. Now is a great time for small businesses of all sizes to start shopping around.
Again, regardless of whether your business must comply with the ACA, you and your employees will be able to take advantage of state health insurance exchanges. The exchanges are designed to lower small business health care costs and should arguably put an end to high yearly increases.
Employers with fewer than 25 employees may also be entitled to claim the Small Business Health Care Tax Credit. This will lessen the cost for those who still want to provide health care. And given the fact that the majority of small business owners do want to provide their employees with health insurance, any of these savings would probably be quite beneficial.
- Why Healthcare Reform Is Great (And Terrible) For Small Business (Huffington Post)
- Health Insurance Overview (FindLaw)
- How to Claim Small Biz Health Care Tax Credit (FindLaw’s Free Enterprise)