Small business owners face difficult challenges in running their business and the most incredible among them is the quick mounting price of health insurance. They have struggled to cover health insurance for their employees within their budget.
The Affordable Health Care Act will be bringing better options for the 28 million small businesses in America. According to the new law, insurers cannot raise premiums for small businesses without proper justification and are also bound to pay rebates if the spending is less than 80%.
AdvertisementSmall employers with employees on low wages get a tax credit of 35% of the premiums and next year the credits will further go up to 50%. In 2014 when the new health exchanges are in place the small businesses will get a few benefits when they shop for insurance in the marketplace - The Small Business Health Options Program.
Small business employers will be able to compare options from many insurers and check benefit packages before they enroll. Today small businesses pay 18% more than large business enterprisers for health insurance, though; when they shop at the marketplace they can pool their risk with other small businesses.
The Affordable Care Act and the new marketplaces will give small entrepreneurs a better chance of providing health insurance to almost 23 million employees. The Health Act is also responsible for ending higher or no insurance for those with pre-existing conditions.
Though enrollment in the marketplace will start from 1st of October 2013, small business can visit www.sba.gov/healthcare to plan and decide their options. This is essential as 96% of businesses in America have less than 50 employees. To keep on skilled employees it is very important to look after the employees by offering health insurance.
Hannah Punitha (IRDA Licence Number: 2710062)
Kathleen Sibelius and Karen Mills, June 2013