Provisions Affecting Small Business in Health Care Reform
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Small Businesses with up to 100 employees will be able to purchase coverage through the health insurance exchanges.
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Provide small employers with no more than 25 employees and average annual wages of less than $50,000 that purchase health insurance for employees with a tax credit.
- Phase I: For tax years 2010 through 2013, provide a tax credit of up to 35% of the employer's contribution toward the employee's health insurance premium if the employer contributes at least 50% of a benchmark premium. The full credit will be available to employers with 10 or ferwer employees and average annual wages of less than $25,000. The credit phases-out as firm size and average wage increases. Tax-exempt small businesses meeting these requirements are eligible for tax credits of up to 25% of the employers contribution toward the employee's health insurance premium.
- Phase II: For tax years 2014 and later, for eligible small businesses that purchase coverage through the state Exchange, provide a tax credit of up to 50% of the employer's contribution toward the employee's health insurance premium if the employer contributes at least 50% of the total premium cost. The credit will be available for two years. The full credit will be available to employers with 10 or fewer employees and average annual wages of less than $25,000. The credit phases-out as firm size and average wage increases. Tax-exempt small businesses meeting these requirements are eligible for tax credits of up to 35% of the employer's contribution toward the employee's health insurance premium. -
Provide grants for up to five years to small employers that establish wellness programs. (Funds appropriated for five years beginning in fiscal year 2011)
This summary is taken from information supplied by the Kaiser Family Foundation, a non-profit, private operating foundation focusing on the major health care issues facing the U.S., as well as the U.S. role in global health policy. It serves as a non-partisan source of facts, information, and analysis for policymakers, the media, the health care community, and the public.