There are few more hotly debated topics nowadays than the Affordable Care Act, more commonly referred to as ObamaCare. However, as a business owner, there is likely one question that is foremost on your mind: “What does the Affordable Care Act (ObamaCare) mean for my Business?”
What the Affordable Care Act (ObamaCare) means for your Business
- Business must provide Health Insurance: Starting in 2015, businesses with more than 50 full-time employees are required to provide health insurance to its employees and pay at least 60% of the premiums. Failure to provide such insurance will result in a shared responsibility fee.
- Disclosure: All businesses with over 50 full-time employees must let their employees know about their State’s Health Insurance Marketplace / exchange.
- Small Business Buying Power: Because small businesses are able to shop for group health plans on their State’s Health Insurance Marketplace via the Small Business Health Options Program, these businesses now have the same buying power as larger firms.
- Incentives for Small Businesses: Under the Affordable Care Act, small businesses with fewer than 25 full-time employees who provide health benefits can receive certain incentives, such as tax breaks and tax credits.
- Medicare Tax: While most (96%) of employers are not affected, 3% of businesses will be required to pay additional Medicare tax.
What the Affordable Care Act (ObamaCare) means for your Employees
Under the Affordable Care Act, many individuals will be able to lower their monthly premiums without sacrificing coverage. Additional benefits of the Act include:
- All health insurance plans must offer a comprehensive set of essential health benefits. These include doctor visits, preventive care, hospitalization, prescriptions, etc.
- Health insurance companies will no longer be able to deny individuals coverage or charge increased premiums for pre-existing health conditions.
- Starting in 2014, most individuals will be required to have health insurance. Failure to obtain insurance could result in fines.
If you have any questions about how the Affordable Care Act (ObamaCare) will affect your business, please contact Offit Kurman business law and transactions attorney Michael N. Mercurio at email@example.com or 301.575.0332. Mr. Mercurio is a Principal and Chair of the Firm’s Business Law and Transactions Practice Group. He serves as outside general counsel to clients on matters related to corporate and business law, commercial transactions, government contracting and real estate.
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As principals in a full-service business law firm, the attorneys in our Business Law Practice Group are both experienced and results-drive, bringing valuable real-world business knowledge and expertise to every matter they handle. Offit Kurman Attorneys At Law addresses the full range of legal issues that businesses, like yours, face during their life cycle. We are there to assist you with the frequent and varied legal issues that arise in your day-to-day business activities.
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What Does the Affordable Care Act Mean for Your Business? The New York Times
How does the Affordable Care Act help people like me? Healthcare.gov