Small Business Health Insurance Choices
You know that you are mandated to provide health insurance for your employees.
But, you aren't a big company, in fact, it's just you and two other employees that make up your entire business staff.
So how are you going to afford to pay for the insurance for you and your staff? Over the past few years, insurance premiums have gone the roller coaster of rising so high that it's near impossible for any business, let alone a small business, be able to afford them.
After the financial crisis happened, insurance premium rates went down in a spiraling dive that left everyone too scared to commit! However now, there may be hope to be found in the new reform bills that will take effect in a few years' time.
So by 2014, small businesses may be able to get together to buy insurance as a group.
Since most entrepreneurial businesses have a small work force, they will be able to avail of group rates rather than individual ones.
The savings may be small, possibly 1% to 4% less, although employees will have more benefits, a raise of about 3%.
But what happens until then? Although the three years until the final date of 2014 won't really take that long, it's not the solution for small businesses that need to get insurance right now.
So until that time, any small business with less than 10 workers who earn about $25,000 can claim a tax credit on their health insurance of about 5% on their tax credits.
Those "bigger" companies that have up to 25 workers who earn a maximum of $50,000 a year can claim partial tax credits.
The insurance company will also be prohibited, when the reforms kick in, from excluding coverage or setting rates that are based on pre-existing conditions.
It will only be age, geographic location, and tobacco use that the rates will be based on.
These are the major changes in store for small businesses.
Until 2014, though, there is nothing new in the market since many states won't be implementing these changes until just before the due date.
But, you aren't a big company, in fact, it's just you and two other employees that make up your entire business staff.
So how are you going to afford to pay for the insurance for you and your staff? Over the past few years, insurance premiums have gone the roller coaster of rising so high that it's near impossible for any business, let alone a small business, be able to afford them.
After the financial crisis happened, insurance premium rates went down in a spiraling dive that left everyone too scared to commit! However now, there may be hope to be found in the new reform bills that will take effect in a few years' time.
So by 2014, small businesses may be able to get together to buy insurance as a group.
Since most entrepreneurial businesses have a small work force, they will be able to avail of group rates rather than individual ones.
The savings may be small, possibly 1% to 4% less, although employees will have more benefits, a raise of about 3%.
But what happens until then? Although the three years until the final date of 2014 won't really take that long, it's not the solution for small businesses that need to get insurance right now.
So until that time, any small business with less than 10 workers who earn about $25,000 can claim a tax credit on their health insurance of about 5% on their tax credits.
Those "bigger" companies that have up to 25 workers who earn a maximum of $50,000 a year can claim partial tax credits.
The insurance company will also be prohibited, when the reforms kick in, from excluding coverage or setting rates that are based on pre-existing conditions.
It will only be age, geographic location, and tobacco use that the rates will be based on.
These are the major changes in store for small businesses.
Until 2014, though, there is nothing new in the market since many states won't be implementing these changes until just before the due date.