Business Survival Tip - Healthcare and Small Business

What you should know about the healthcare reform and your small business.

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Carl Kleimann
Episode: 022
December 23, 2009

Summary:

Healthcare reform is everywhere in the media. Requirements for small business owners and employers are going to change big time! Carl Kleimann gives details YOU should know.

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Carl: Hello business owners this is Carl Kleimann with another Business Survival Tip from Odyssey One Source. Healthcare reform is in the media on a daily basis but many small business owners remain unclear about when and how it would affect their businesses. So, I will address the key elements of the current proposal before Congress.

First, understand that the proposed reforms, if passed, are scheduled to be phased in over a 9 year period. Also understand that many of the proposed Healthcare Reforms have little or no impact on employers. These include reforms to Medicare, Medicaid, and the Children's Health Insurance Program for example. So, let me focus on those that are most important to employers.

Starting in 2010, insurance companies would be banned from selling plans that contain a lifetime benefit maximum; they would be required to cover dependents through age 26; and would be required to pay for reconstructive surgery for children born with deformities. Employers would be required to extend COBRA continuation until 2013 when the Health Insurance Exchange is scheduled to be up and running. These reforms are certain to increase claims and therefore the cost of Healthcare for your small business.

2013 is the big year for reforms affecting employers. This is when employer provided healthcare becomes mandatory for businesses with $500,000 or more in annual payroll. Failure to comply would result in a penalty equal to up to 8 percent of payroll. Tax credits worth up to 50 percent of premium would be available for up to two years to lower-wage small businesses that historically haven't offered healthcare. This is expected to give them time to adapt to the higher cost of doing business. Also in 2013, the Health Insurance Exchange will open to employers with 25 or fewer employees and will include the much debated Public Health Insurance Plan.

In 2014 and 2015, the Health Insurance Exchange will expand to accommodate larger employers. And finally in 2018, all employer-sponsored plans must conform to coverage standards as well as minimum employer contribution standards.

I am Carl Kleimann and this has been another Business Survival Tip by Odyssey One Source, ranked as the number one Professional Employer Organization three years running by the Black Book of Outsourcing. For more information on this and other issues affecting employers, please visit www.odysseyonesource.com.