Obama Care summary for small business (Less than 50 employees)
By Hubie Laugharn
This is what we know as of 2-18-13 about Obama Care for Small Business
Employer does not have to provide health insurance and cannot be penalized.
- Small groups will be able to purchase group health insurance through the exchange. The exchange for small group is called S.H.O.P. within “Covered California” (the name of the California exchange).
- Must provide notice to the employees regarding the Exchange.
- Max waiting period may not exceed 90 days. 30-60 day waiting period will have a $400 tax/fine.
- Incentives for wellness participation increases to 30% from 20%.
- Special payroll tax of .9% for employees with incomes over $200K.
- A 60 day notice of any material modifications to employee’s health plans must be posted for the employees other than at the regular open enrollment.
- A limit of $2,500 in salary deferrals for FSA plans.
- In 2014, employer must file annual report with HHS on company and plan information.
- Plans must cover minimum benefit package: The “Medal” plans: Bronze, Silver, Gold, and Platinum. Bronze / 60% (least expensive) plan- individuals will be responsible for 40% of the medical cost. Silver / 70% plan, the insured will be responsible for 30% of the medical cost. Gold / 80% plan and the Platinum / 90% plan
- The max deductible on all plans will be limited to $2,000.
- HSA health plans will still be able to continue with their high deductibles over $2,000, however; we feel that they may be deemed “Cadillac” plans and as such, will be taxed 40% starting in 2018. In 2012 the tax for using HSA funds for non-prescription drugs was raised from 10% to 20%.
For more Information about Obama Care summary for small business call the experts at Solana Insurance Service (949) 675-1920. We are located in Newport Beach in the heart of Orange County and we proudly serve all of Southern California including, Los Angeles County, Orange County, San Diego County, Riverside County, as well as San Bernardino County.
Solana Insurance Employee Benefits
3700 Newport Blvd. #309
Newport Beach, CA 92663
Topic: Obama Care summary for small business