ACA for Small Business
New Laws Impact Health Insurance Options for Small Businesses
Simply put, the Affordable Care Act (ACA) is a new federal statute created to help increase the quality and affordability of health insurance in the U.S. Officially titled the Patient Protection and Affordable Care Act (PPACA), the statute also is referred to as Obamacare, a reference to President Barack Obama who signed the mandate into law in March 2010.
The ACA includes a number of provisions specific to small businesses:
- Small Business Health Options Program (SHOP) The SHOP Marketplace is an online health insurance exchange featuring health plan options that specifically target small employers. SHOP is open to employers of up to 50 full-time employees. By pooling insurance risks for small groups, the exchange seeks to increase small business purchasing power, provide more choices and reduce administrative complexity.
- Health Care Tax Credits Under ACA, many small businesses can qualify for tax credits to help offset the cost of providing healthcare coverage for their employees. The credits specifically target businesses that employee low- and moderate-income workers. Credits may be worth up to 50 percent of an employer's insurance premium costs.
- Reporting and Notifications As a result of new tax provisions, the IRS has implemented new ACA-related reporting requirements to which small businesses must adhere. Some business owners may be required to report the value of the health insurance provided to each employee on W-2 forms. Additionally, all employers covered by the Fair Labor Standards Act must officially notify employees in writing about the new health insurance Marketplace.
Visit www.healthcare.gov/small-businesses/ for more information.