How Does the Obamacare Law Affect Small Business Health Insurance?

How does the Obamacare law affect small business
health insurance? Officially known as the Affordable Care Act,
or the ACA, the Obamacare law affects small business owners in several ways. It has, in many cases, driven down the costs
of employer coverage by changing the way premiums are calculated. It can affect your taxes. It may require larger employers to offer coverage
to workers. Let’s look at each of these in more detail. First, under Obamacare your health insurance
premiums are no longer based on the health or pre-existing medical conditions of the
people in your group. In the old days, sick coworkers could result
in increased premiums for everyone else, but small business health plans are generally
no longer underwritten in the same way. Now, your costs are mostly based on the ages
of your employees and the general health risks of the people in your local community or region. This often results in lower premiums relative
to self-purchased coverage. Second, you could generally deduct monthly
insurance premiums from your business’s taxes before Obamacare, but the Obamacare
law also made special tax credits available to some businesses. If you have fewer than 25 employees, ask your
licensed agent about these credits when shopping for coverage. Third, you should know that under Obamacare,
only businesses with fifty or more full-time workers (or the equivalent in part-time employees)
are obliged to offer coverage or face a penalty. That said, many small business owners still
opt to sponsor an employer-based plan for themselves and their employees. To learn more about your small business health
insurance options today, visit

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One thought on “How Does the Obamacare Law Affect Small Business Health Insurance?

  1. You know what it REALLY did? Since my company didn't want the REDUCED coverage and INCREASED out-of-pocket costs mandated by this garbage, they flat-out PUNISHED my company with FINES, (which they like to happily say are just 'assessment costs') and caused a substantial INCREASE in our self-insurance premiums. Also, many small business that we deal with were FORCED to lay off (actually just plain ol' fire) workers to stay under the 50 employee mark, in order to avoid having to provide that joke of an insurance that they simply can't afford. And we deal with companies all across America and they're all saying the same thing. Oh yeah, the punishments and employees being forced into the streets are a thing to marvel… So maybe, just maybe, you shouldn't be spewing these lies with such a big smile on your face?

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