Business Health Care

What Exactly is Business Health Care?

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

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Under Obamacare or the Affordable Care Act, there are certain Business Health Care rules and regulations that all businesses have to follow. Businesses with less than 100 full-time-equivalent employees are not required to provide any health insurance to their employees & will not face any tax penalties due to this. However, if they do provide their employees coverage, they may receive certain tax credits, such as:

  • Employers that have 25/fewer employees with average annual-wages below $50,000, might be eligible for the special tax-credit of upto 35% of the amount that the employer contributes (minimum 50%) towards employee insurance premiums
  • In 2014, that tax-credit increased to 50% for the employers that pay a minimum of 50% of monthly health-insurance premiums’ of their employees

Keeping Employees Informed

As a business owner, regardless of whether you offer employees Business Health Care benefits or not, it is very important that you keep your employees informed about their obligation to ask for health-coverage under the ACA. You are also required to let the employees know that:

  • They are also eligible for guaranteed-coverage in the individual market
  • They might be eligible for certain government subsidies if coverage that you provide isn’t considered to be affordable under the existing law

Business Health Care Updates

With effect from 2015, businesses that have an equivalent of 100/more full-time employees have to provide “affordable” health insurance. If they fail to do so, they will have to pay a certain tax penalty. Your company may be eligible for a small Business Health Care plan in case it meets these criteria:

  • Your company has a minimum of 2 full-time owners, partners, officers, and/or employees(verified by officially-filed state quarterly wage & tax statements) or annual federal tax-return documents
  • Your organization is a legitimate business entity (it was formed for any purpose other than for obtaining insurance). It should be verified via any 1 of these documents:
  • A business license/fictitious name-filing (for partnerships & proprietorships)
  • Articles of organization (for all limited liability companies)
  • Articles of incorporation (for larger corporations)
  • Your company meets all the minimum employer-contribution percentage that the insurance company has set. It is important to note that the eligibility criteria might differ among insurance companies & by state.

Cost of Group Business Health Care

The final monthly cost of your Group Business Health Care plan will be determined by the insurance company after your application has been thoroughly reviewed and approved. First the insurance company assesses the group and uses a range of criteria such as company location and size as well as employee ages. Based on these, it will arrive at the monthly rate/ premium that you will have to pay.

As part of the ACA, your employees’ health, including any pre-existing conditions, will no longer impact Group Business Health Care rates. The final monthly rate will remain the same regardless of whether you apply directly via the insurance company, a health insurance agent or eHealth.

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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