Small businesses have options available if they want to offer health insurance coverage with the passing of the Affordable Care Act (ACA). The ACA has created a marketplace where small business owners are able to compare plans and rates, and to choose the type of insurance they want to provide their employees. By shopping the insurance exchange, you guarantee the plans you select include the 10 Essential Health Benefits. These benefits are specific items which all plans must have in order to satisfy the requirements of the ACA.
The cost for small business health insurance coverage has been designed to be flexible to fit with your needs and requirements. For instance, you are able to decide to select the type of plan you want to offer, as well as the amount you want to contribute towards your employees’ premiums. There are tax credits and health subsidies available for qualifying businesses, which can cover up to 50 percent of the premium costs. Any remaining amounts you pay above the amount of your tax credits and health subsidies are able to be deducted from your taxes. It should be noted that only those plans purchased directly through the exchange are eligible for these incentives.
Some other useful information you should know is, if you decide to provide an employee- sponsored plan, it must be made available to all of your full time employees who work on average 30 hours or more per week. You also have the option to offer the plan to your part time employees, but it is not required. Additionally, a set percentage of your employees must enroll in your new employer-sponsored plan.