Healthcare reform timeline for business

If you are concerned about how the Health Care Act of 2010 will affect your business you are not alone. There are still several things that need to be worked out. We have created a timeline that outlines when the elements of the bill are implemented. If you need more information about how to adapt your business to the Health Care Bill please contact us and we will be happy to help you navigate through it.

Group Health or Insurance for Business

  1. 2010-2014 Business tax credits- Businesses with 10 or fewer full-time-equivalent employees earning less than $25,000 a year on average will be eligible for a tax credit of 35% of health insurance costs. (Companies with between 11 and 25 workers and an average wage of up to $50,000 are eligible for partial credits.)
  2. 2010- Employer provided insurance for retirees ages 55-64. The government will set aside $5 billion to help sustain coverage of this group. Program ends in 2014 when guaranteed insurance begins.
  3. 2014-Insurers will no longer be able to set rates or exclude coverage based on pre-existing conditions, and can vary premiums only by geographic location, age, and tobacco use.
  4. 2010- Insurers will no longer be able to have lifetime limits on coverage and on "rescission" (canceling policies already issued) except in cases of fraud.
  5. 2014-Businesses with more than 50 employees will be required to either offer healthcare coverage or pay a penalty of $750 a year per full-time worker. The coverage offered will also have to meet minimum benefits -- covering both a specific set of services and 60% of employee health costs overall -- or else employers will face additional penalties.
  6. 2014-Plans costing more than $10,200 a year (also known as "Cadillac Plans") for individuals or $27,500 for family coverage (not counting dental and vision plans) will be subject to a 40% tax on the portion of the cost that exceeds the limit. Though the tax would actually be paid by insurers, it's expected that it would be passed along to plan holders in the form of higher premiums.
  7. 2014- States will have to set up Small Business Health Options Programs, or "SHOP Exchanges," where small businesses will be able to pool together to buy insurance. ("Small businesses" are defined as those with no more than 100 employees, though states have the option of limiting pools to companies with 50 or fewer employees through 2016; companies that grow beyond the size limit will be grandfathered in.)

For more information about Group Coverage options click here. For more information on the timeline of the Health Care Bill click here.
If you have any other questions about the effects of the Health Care Bill on your business, feel free to call Murray Insurance or contact us by email.