A new study found that about 25 percent of people who own small businesses with fewer than 25 workers do not have health insurance.
Typically, these small business owners do not provide health insurance either for themselves or for their employees, reports the Huffington Post.
So what will the fallout be when Obamacare kicks in next year with its provisions requiring that certain individuals and employers purchase health insurance? Surprisingly, not a whole lot.
You may have heard that the Affordable Care Act (popularly known as Obamacare) does have several provisions requiring that employers provide health insurance for their employees. In fact, if a qualifying employer fails to provide the required health insurance, it could face a $2,000-per employee penalty.
However, if you read the small print in the law, you'll realize that these requirements generally only apply to employers with 50 or more employees. So the small business owners with less than 25 employees may be exempt from the mandatory health insurance requirement.
Instead, the only penalties small business owners may face when Obamacare kicks in, may be the same penalties that any uninsured person will have to pay for not having health insurance.
To avoid the penalties, small business owners should know that about 60 percent of entrepreneurs who buy private insurance have incomes that qualify them for tax credits under the Affordable Care Act, reports the Huffington Post. In addition, 83 percent of small business owners who are uninsured would be eligible for subsidized coverage under the law. So it may be cheaper than you think to purchase insurance.
If you have questions regarding your obligations under Obamacare, you should contact an employment law attorney. It can be difficult figuring out if the requirements of the law apply to you. You can also ask a question about the Affordable Care Act on FindLaw Answers and typically get a response within 24 hours.
- How Small Business Owners Get Health Insurance (Kaiser)
- Should Businesses Drop Healthcare Under Obamacare? (FindLaw's Free Enterprise)
- 3 Ways Healthcare Reform Can Affect Small Businesses (FindLaw's Free Enterprise)