Health care insurance premiums have been increasing dramatically and have been hurting many small businesses. Health care costs take a large percentage of small business’ payroll, which was beginning to be unfeasible for many businesses. Small businesses pay at least 18% more than large companies who can better afford employee health care. Many small businesses were left with the decision to close their doors or to drop employee health care. However, the new health care reform tax credits will be rewarded to small businesses who have difficulty sustaining health benefits.
This new small business health care tax rebate will businesses who employ over �x2153 of the American population, with less than 100 employees in each company. Tax credit is given to businesses that employ less than 25 full time employees who have annual salaries of less than $50,000. These businesses in turn must pay a minimum of 50% of their workers’ health insurance premiums. Small firms who employ 10 or less employees who earn up to $25,000 annually will receive the greatest credit, and must pay 35% of their employees’ health insurance premium. An estimated 84% of small businesses will be eligible for the health care tax rebate; this will cover about 16.6 million workers.
To find out if your small business qualifies for the health care reform tax rebate, the IRS website will provide you with a list to see if the number of workers you employ and their salaries are enough.
A new law will make denied coverage illegal. Usually, insurers will try to find any excuse to drop coverage for a significant claim, not any more.
All health care plans are required to cover preventative care such as annual physicals and other essential checkups and programs. The gov. has put aside $200mill in grants over 5 years to assist small businesses include programs which include nutrition, stress management, smoking cessation, and physical fitness.
Greater tax rebates will be given by 2014. Health insurance companies can’t charge more no matter the health status, gender, or age of the employee.
If you operate a small business, it might be helpful to look over the new health care laws that can help and satisfy you and your employees.
You can also save your business by finding out what risks your business may face or how you can save your business money by consulting New York or New Jersey risk management agencies.