Affordable Business Health Coverage

What is Affordable Business Health Coverage?

Employers Resource helps every business at all stages with growth and development. Find out about our affordable business health coverage and much more! Call us today at (800) 559-2350.

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Under Obamacare, there are specific Business Health Care rules & regulations that every business has to follow. Businesses that have below 100 full-time-equivalent employees aren’t required to provide Affordable Business Health Coverage to their employees. They won’t face tax penalties on account of this. On the other hand, if they provide employees health coverage, they might be eligible for specific tax credits:

  • Employers with 25/less employees with their average annual-wages <$50,000, may be eligible for a tax-credit of upto 35 percent of the total amount contributed by the employer towards the employee insurance premiums. The employer contribution has to be a minimum of 50%
  • In 2014, this particular tax-credit was increased to 50 percent for any employers who pay the minimum of 50 percent of the monthly health-insurance premiums for their employees

Keeping Employees Informed

If you are a business owner, irrespective of whether you offer Affordable Business Health Coverage benefits to your employees or not, it’s crucial for you to keep your employees informed that they can individually ask for medical coverage (under the ACA). It’s also important that you keep your employees informed that:

  • They’re eligible for a guaranteed-coverage if they apply as individuals
  • They may also be eligible for specific government subsidies if any coverage which you provide is not affordable under the current Affordable Business Health Coverage law

Updates

Starting 2015, any businesses that have equivalent of 100 or > full-time employees are required to provide Affordable Business Health Coverage. Failing to do will make them liable to pay a tax penalty. The size of your company decides which medical plan it will be eligible for; these are the criteria:

  • Your company has at least 2 full-time owners/partners/officers, and/or employees (verified) or have verified documents for the annual Federal tax-return
  • Your company is a legitimate business. It has to be verified via any of these documents:
  • A business license or a fictitious name-filing (in case of a partnership/ proprietorship)
  • Articles of organization (limited liability companies)
  • Articles of incorporation (larger corporations)
  • The company meets the required minimum employer-contribution percentage set by the insurer. It’s important to note that this eligibility criteria could differ among various insurance companies even within a single state

Business Health Coverage – The Cost

The insurer will review and approve your application, after which it will determine what the final monthly-cost of the Health Coverage plan will be. At the outset, the insurer will assess the group via a number of criteria including company location, size & the ages of its employee. The monthly rate/ premium that you are required to pay will be based on these.

The final monthly rate for the Affordable Business Health Coverage you pay will not change regardless of whether you are applying directly through the insurance company, eHealth or a health insurance agent. It’s important to follow the existing employee health benefit laws and you will be able to get full information through your insurer or insurance agent.

Employers Resource helps every business at all stages with growth and development. Find out more! Call us today at (800) 559-2350.

Ranked #1 HR Services in Orange County and San Diego, Employers Resource will take your company to the next level of success! Just give us a call to learn more about what we can do for you!

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