Health Care Law Confuses, Angers Some Small Businesses

 

Share

0

The credit decreases as the size and average wage of the company increases. For example, other small businesses, classified as companies with 25 employees or less whose average annual wage is less than $50,000, are also eligible, but a smaller portion of their costs will be covered. That percentage is determined on a sliding scale basis.

Insurance Exchanges: By 2014, the administration will set up American Health Benefit Exchanges, a marketplace where businesses with 100 employees or less, and individuals, can shop for coverage. The exchange will be designed as a place where people can compare various insurance policies and options.

States will have to offer the Small Business Health Options Program where small businesses will be able to buy insurance together in pools.

Cokie Roberts Does Kaiser PSA On Health Care Watch Video

Countdown to Health Care Reform Watch Video

Open Enrollment Changes Watch Video

By 2017, businesses with more than 100 employees will be able to purchase coverage in the SHOP Exchange.

Exemption From Penalties: By 2014, all businesses will be required to provide health insurance to their employees, and will face penalties if they don't. But employers with 50 or fewer employees will be exempt from the penalties.

1099 Mandate: Under the Internal Revenue Service 1099 reporting requirement, businesses will have to identify any person or any entity to whom they have paid $600 or more for goods or merchandise in a year. The federal government will have authority to tax those transactions.

"The concern is not so much that small businesses will have to pay more but instead that it will be a reporting requirement nightmare, that the paperwork burden of having to file all of these new forms will be extensively burdensome to businesses," said Jennifer Tolbert, health policy analyst at Kaiser Family Foundation.

Read more about the provisions that went into effect, starting Sept. 23