Health Care Changes for Small Businesses – 1

Health Care Changes for Small Businesses – 1

Many businesses come to us asking about the recent healthcare changes. They are interested in learning more about the changes and how they might affect their small business in North Carolina.

There are many aspects to the new Affordable Care Act that might affect your small business in North Carolina.

The law will work to make healthcare more affordable for small business owners through a new small business tax credit. Currently, small business owners in North Carolina pay an average of 18 percent more that large businesses for the same coverage. The tax credit is worth up to 35 percent of a small business’s premium costs in 2010. On Jan. 1, 2014 this rate increases to 50 percent.

Most of the law’s key features are set to take effect in about a year and a half, on January 1, 2014.

Here are 5 aspects to the bill that your small business should know:
  1. If you are a one person business, the requirements will be similar to the individual mandate.
  2. Starting in 2014, small businesses with fewer than 100 employees can explore healthcare options through Affordable Insurance Exchange, giving small businesses buying power similar to that of large businesses.  However, it still may be hard to find and select the best coverage for your needs.
  3. Nonprofits are also eligible for the health care tax credit.  The credit it worth up to 25 percent in 2010 and then increases to 35 percent in 2014.
  4. An employer’s eligible contribution is limited to the average cost of health insurance in that state.
  5. The law does not require small businesses with under 50 employees to have health coverage.  It will, however, provide tax credits for those who provide insurance for employees.

Changes are in store for the healthcare industry in the coming years.  Although your options for how to purchase insurance may change, Carolina Insurance Professionals are still here to give you the individual guidance and attention you may not find anywhere else. If you have any questions about how the Affordable Healthcare Act could impact your bills or coverage, give us a call!  We are happy to review the best options in North Carolina for your small business.