The Patient Protection and Affordable Care Act (ACA) that President Barack Obama signed into law on March 23, 2010 is now in effect. There are many questions that surround this law and we know, our member businesses have even more. That's why we have dedicated this section of our website to help our members make better sense on the requirements of ACA for businesses.
As with all issues involving the interpretation or application of laws or regulations, we encourage you to rely on your attorneys for authoritative advice on the Affordable Care Act. This information is not intended as, nor does it constitute, legal or compliance advice. This information should not be relied upon or used as a substitute for advice from legal, accounting, tax and/or other professionals.
In February, 2014 we hosted a webinar for our members on the Affordable Care Act. Hosted by Chris Schrader, Shrader & Associates and Doug Johnston, JA Benefits, this webinar was geared to help small and medium sized businesses with what they needed to know NOW about ACA.
(Note: The accompanying powerpoint will come on screen at ~1:39 into the webinar.)
Affordable Care Act: Resources for Small Business Owners
Below are some general resources about the Affordable Care Act for small businesses. As things happen that affect our members, we’ll be updating this page, so check back!
In addition to providing a new avenue for individual health insurance plans, the Affordable Care Act created the Small Business Health Options Program (SHOP), which is designed to help business owners with less than 50 full-time employees offer health coverage to their employees. Some highlights from healthcare.gov include:
- You control the coverage you offer and how much you pay toward employee premiums.
- You can compare health plans online on an apples-to-apples basis, which helps you make a decision that's right for your business.
- You may qualify for a small business health care tax credit worth up to 50% of your premium costs. You can still deduct from your taxes the rest of your premium costs not covered by the tax credit. Beginning 2014 the tax credit is available only for plans purchased through SHOP.
- You decide what you'll pay toward employee premiums, and then your employees can enroll.
In order to qualify for SHOP:
- In 2014, SHOP is open to employers with 50 or fewer full-time equivalent (FTE) employees. Beginning in 2016, all SHOPs will be open to employers with up to 100 FTEs: If you're self-employed with no employees, you can get coverage through the individual market Health Insurance Marketplace, but not through SHOP.
- If you plan to use SHOP, you must offer coverage to all of your full-time employees–generally those working 30 or more hours per week on average.
- In many states, at least 70% of your full-time employees must enroll in your SHOP plan. See “How many of my employees must enroll in SHOP?” on the dropdown menu below for more information.
Timeline for SHOP Rollout:
Later this year, SHOP will be rolled out as a fully web-based process. Until then, you can do a couple things to get started.
- Review available plans: Plans vary by county, so be sure to locate your correct county by filtering using the small button next to each column header that looks like a list.
- Fill out a paper application, mail it in, and finish enrollment online in November.
Remember:
The Affordable Care Act treats businesses and individuals differently:
- Businesses are not required to offer healthcare to their employees.
- SHOP is only available to companies with 50 full-time employees or less in 2014.
- If a company has more than 50 full-time employees, they may be subject to an Employer Shared Responsibility Payment depending on whether they offer coverage to their employees and the kind of coverage offered.
There are a lot more details out there to consider; if you’re ready for more research, take a look at some of these additional resources:
- Detailed Q&A (PDF)
- Small Business Administration Resources for ACA
- What if I’m self-employed?