Affordable Business Health Insurance

Affordable Business Health Insurance- The Facts

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


The ACA impacts businesses as well as individuals. The former also get certain tax benefits that make this a very good option for the organizations that opt for it. Obamacare offers incentives like tax credits and tax breaks through what is called the SHOP (Small Business Health Options Program), to any small business with < 25 full-time employees (with average annual wages less than $50,000). Thus, companies are able to provide Affordable Business Health Insurance benefits to employees.

The Specifics

Though a majority of employers & employees will not have to pay any additional taxes under Obamacare, there is an increase in the Medicare part-A tax. This is specifically for employees and small businesses which make above $200,000. Starting in 2015- 2016, any employers with 50 full-time-equivalent employees or more are required to offer Affordable Business Health Insurance to these individuals/will be liable to pay a penalty.

An Ideal Solution

The Affordable Business Health Insurance act provides very generous tax credits to any smaller business that has 25 or less full-time-equivalent employees. Very simply, this act benefits the employees as well as business owners. Take a look at some relevant facts:

  • The SHOP online functionality was launched on 15 November’ 14
  • Small businesses can apply for these plans & the tax credits via paper applications
  • Affordable Business Health Insurance tax benefits & tax credits are all based on the total number of FTE employees as well as the average annual wages (not just the number of full-time employees)
  • These tax-credits are retroactive from 2010- which means businesses can claim it for any year from 2010
  • e.f 2016, employers with 50-99 FTE must insure that particular workforce as well
  • Employers with 50/more FTE, who don’t provide Business Health Insurance coverage, have to pay a fee of $2,000 per FTE (deducting the first 30 FTEs)
  • In the case of employers with 50/ more FTE, that provides coverage (that is not affordable/ doesn’t provide minimum value), this fee will be the lesser of $3,000 per FTE who receives this subsidy/ $2,000 per FTE (deducting the first 30)
  • Large & small businesses are also eligible for transition relief (if they are transitioning to the latest mandate)
  • Businesses with profits above $250,000 have to pay 9 percent more above the current Medicare part-A tax. This particular amount is split (.45% each) between employees & the small business owner
  • Businesses with over 50 FTE-employees have to keep all their employees informed about the state’s Health Insurance Marketplace /exchange

The Changes

Since 2014, Business Health Insurance and the laws associated with it have changed in a big way; employers as well as employees should be aware about these changes and facts. The government keeps adding updates and it is important that business owners check with their tax consultants about what the current requirements are. Though these laws and regulations seem a little complex at first, the ACA site also has a lot of information that can be useful to business owners.

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

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