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Health Care Reform: Important Things that You Need to Know

Posted on April 12, 2010
HeliosWritten by Helios | Email author

bre039mh3Along with the year long contentious debate over the recently signed Health Care Reform bill, there have also been many misconceptions and falsehoods spread that the Health Care bill is bad for small business. Truth be told, as with most legislation, there is both some good and some not so good. The good is that this bill will do much to counter the skyrocketing costs of health Insurance while cutting a projected 138 billion dollars from the federal deficit between 2010 and 2019 and an additional 1.2 trillion over the second decade which could, in turn, reduce taxes and interest rates. Additionally, Starting with 2010 taxes, small businesses with fewer than 25 employees that pay at least 50% of the health care premiums for their employees qualify for a tax credit up to 35% of your premiums (50% after 2014 if you purchase insurance through an exchange). How much of a credit you’ll get depends on the number of employees you have and their average wage. NOTE, This tax deduction is not available to sole proprietors, so you may want a different corporate legal form. The not so good is that there are no caps on health insurance premiums. This may cause insurance companies to hike rates significantly before they have competition in 2014. If a company has more than 50 employees, They will have to provide coverage, or pay a fine beginning in 2014.

These are a few of the highlights. Check out the details in the Small Business Majority’s, “What’s in Health Care Reform for Small Businesses” , detailed fact sheet.  The Small Business Majority was founded by small business owners to present an impartial view of the issues that have the greatest impact on small businesses.

~Kevin Lawton

2 Comments | Category Health Care | Tags:

2 Comments

  1. by Scott Eblin on April 13, 2010 at 10:55 am

    Kathy –

    Thanks for the quick recap of the health care bill and creating some clarity out of all the noise that went on during the debate. As you point out, the truth is usually somewhere in the middle of the extremes that are argued on either end of the spectrum. One thing we know for sure about health care expenses is the country can’t afford to stay on the path we’ve been on. Something had to change. Let’s hope this is a good start in the right direction.

    Scott

  2. by Sharon Childers-Pelkey on April 26, 2010 at 3:52 pm

    Kevin,

    I have read yours and Kathy’s blogs. they are both wonderful.

    I have to agree with you on the passing of the Healthcare reform bill, it will not affect small businesses. As a matter of fact, tens of millions of Americans uninsured due to the affects of the increase in skyrocketing premiums. Even those with health coverage are struggling to cope with soaring costs. It is becoming increasingly difficult for employers, particularly small businesses to provide health coverage to their own employees.

    My understanding of the bill is that it strengthens employer-based coverage, makes insurance companies accountable and ensures patient choice of doctor and care without Goverment interference.
    Nothing changes under you own coverage other than your costs can drop by as much as $250 a year. If you don’t have coverage, you will have a choice of new, affordable health insurance options.

    The healthcare, and the denials from major carriers who can afford to pay the claims, continue to deny due pre-exisiting. This in turn causes the Dr’s, hospitals, etc. to continue to raise costs due to the patients inability to pay.

    I thank you both for posting this Blog, and look forward to reading others thinking and interpretation of this new bill. I am very glad this has passed.

    It has to get better!

    Sharon

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