Health Care Reform – Small Business Tax Credits

One of the first impacts of the new health care reform law is actually a tax credit, rather than a tax increase. Small businesses with 25 or fewer FTE (full time equivalent) employees who offer health insurance to their employees may be eligible for some tax relief. A tax credit for up to 35% of the cost of providing coverage will provide an incentive for small businesses, the drivers of our economy, to help reduce the uninsured in America. After all, group health insurance already has protections for guaranteed coverage, pre-existing conditions, and the inability to cancel your coverage if you become sick. The same cannot be said for individual and family plans.

The tax credit calculation is explained in detail on the IRS website via this link:

http://www.irs.gov/newsroom/article/0,,id=220839,00.html

One thing to be established before these credits actually start hitting our balance sheets is what is an average premium for small group in a given market? A list of average premiums by state is to be published by the IRS later this April.

If you would like to see how simple and affordable it is to offer group health insurance to your employees, please feel free to give us a call.

Kelly D. Moore, CEBS
Moore Benefits, Inc.
(877) 872-2080