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The ink has just dried on the historic Supreme Court ruling that the Affordable Care Act, known to many as "Obamacare", is constitutional.Outside of political talking points and rhetoric, little time has been given to help business owners and entrepreneurs interpret what this means for them. While I live and breathe health care disruption, most business owners probably just want the most relevant details.
Here is a brief primer on what's in the ACA:
Businesses w/more than 50 employees
- Businesses with more than 50 employees will be required to provide health insurance to their employees
- Penalty for not providing insurance: Employers with more than 50 employees that do not provide insurance must pay a penalty of $2,000 for every employee in the company. However, the first 30 employees are not counted in calculation of the penalty. Example: an employer with 70 employees would pay the penalty for 40 workers, or $80,000 (40 x $2,000)
Small Businesses (Less than 25 Employees)
- Small businesses with fewer than 25 full-time employees and average annual wages below $50,000 are eligible for tax credits for providing health insurance.
- Entrepreneurs and others under the age of 26 are permitted to remain on their parents' insurance plan. This includes those who are married, no longer live with their parents, or are not claimed as dependents on a parent's tax return.
Entrepreneurs that need Individual Plans
- Entrepreneurs who need health insurance will have more options for individual plans through state-based insurance exchanges (along with privately offered plans).
Obviously there is a lot more to the bill, that will affect you as a patient, taxpayer, and voter. Hope this helps!