Challenges of thinking Different

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Let’s forget politics for a moment, assume it will be put in place in its current form for the most part, and figure out what it means for small businesses like yours.

The key provisions of the law are these:

1. The individual mandate, a requirement to have insurance or pay a fine, with credits for those with lower and moderate incomes.

2. Tax credits for companies with fewer than 25 employees that provide health insurance.

3. Penalties for companies with more than 50 employees that do not provide insurance.

4. State health insurance exchanges— marketplaces with approved plans, including Small Business Health Options Programs. If a state doesn’t establish its own exchange, a federal exchange will be available.

Let’s look at a few theoretical small businesses and see how the health care law will affect them:

• A small manufacturing company in Denver with 15 employees that doesn’t offer insurance now. There’s no direct impact on this business because companies with fewer than 50 full-time employees (or the equivalent) are not required to provide insurance.

After 2014, this company’s employees can turn toColorado’s Health Benefit Exchange to find an individual plan.

• A self-employed 32-year-old graphic designer without health insurance. If she can’t get insurance now because of a pre-existing condition, wants insurance with maternity benefits but can’t find any, or finds that insurance is just too expensive in the current market, she’s a winner.

Source : USA Today

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