How will Healthcare Reform Affect Your Business?
Are you prepared?
Whether you love it, hate it, or are indifferent- the reality is that Healthcare Reform is here and it could mean some very big changes for your company. Government statistics show that 200,000 small businesses will be affected by the new laws and regulations rolling out over the next several years.[/column]
All companies with 50 full-time employees or more must start providing insurance to their staff starting in 2014. If employers don’t offer coverage and so much as a single worker turns to the government for a health care tax credit or subsidy on the exchanges- then the company has to pay fines.
The penalty starts at $40,000, and increases with the size of the firm’s workforce by $2,000 per additional worker after the 50 mark.
Simply providing benefits won’t satisfy the law requirements. Plan must cover at least 60% of health care expenses, and coverage cannot cost more than 9.5% of the employee’s salary. If coverage does not meet the legal requirements the company will be hit with an even higher penalty of $3,000 per employee.