A Look at Small Business and Health Care Reform

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Happy Monday everyone! As we head deeper into September, the feeling of fall becomes ever more present with each passing day. In Jackson, fall not only signifies the return of our kiddos to school, and the start of hunting season, but also the turnover of our ever changing seasonal workforce. With this shift on many employers mind, we decided to do a quick post on how Health Care Reform will effect small businesses right here in Jackson Hole. As always, we love to hear your comments and questions so keep them coming!

A Look at Small Business and Health Care Reform

  1. Starting in 2014, all businesses with 50 or more employees will be required to provide health insurance benefits to their employees or be faced with a penalty fee
  2. Businesses that pay more than 50% of employees’ health benefits, have fewer than 26 employees, and pay average annual wages of less than $50,000 can claim a tax credit of up to 35% of the cost of premiums from the 2010 tax year through the 2013 tax year. The credit will go up to 50% in 2014 and can be used for two consecutive years after that
  3. In 2014, all individuals will be required to purchase individual health insurance or be fined with a penalty tax. This includes anyone who works for a business with 50 or fewer employees who does not receive health care benefits, solo entrepreneurs, part-time, and seasonal workers.
  4. In 2014, “community rating” rules will prohibit insurers from charging more to cover small businesses with sicker workers or raising rates when someone gets sick
  5. The State Exchange Program is a tool that will help to lower costs for both employers looking to insure their employees, and individuals looking to get insured. The exchange will do this by adding retail competition to the insurance market place. Wyoming is using government grants to research whether or not it is feasible to provide a state-run health exchange. If Wyoming cannot, or does not implement a state-run exchange by 2014, a government run exchange will be implemented in its place.

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