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What is the obamacare cost to business?

  • A friend of mine owns a multistate business. I was out to dinner with him and 12 others so I didn't get into it, but he said that he is going to have to lay off 5 people to get under 50 employees in Columbus and is going to have to split his company into three companies - one for each state.

    What are the costs and why is this beneficial? Or are the details even known yet?

    shaunsimpson

  • shaunsimpson said...

    A friend of mine owns a multistate business. I was out to dinner with him and 12 others so I didn't get into it, but he said that he is going to have to lay off 5 people to get under 50 employees in Columbus and is going to have to split his company into three companies - one for each state.

    What are the costs and why is this beneficial? Or are the details even known yet?

    i THINK that is a made up story........quit trying to make up stories.....DAVEY and TIMMY how would you respond to this made up story?

    minsterbuckeye

  • I promise you this is not a made up story.
    It is a printing company. He said that the it would make sense since he would need to stay under 50.
    I don't know how they will since they already have insurance that they contribute.
    It very well could be that he will save money by getting rid of insurance and just putting it on employees to get their own? If this is the case than it would Benifit smaller companies. I really don't know the answer.

    shaunsimpson

  • shaunsimpson said...

    I promise you this is not a made up story. It is a printing company. He said that the it would make sense since he would need to stay under 50. I don't know how they will since they already have insurance that they contribute. It very well could be that he will save money by getting rid of insurance and just putting it on employees to get their own? If this is the case than it would Benifit smaller companies. I really don't know the answer.

    Companies over 50 employees must provide 100% coverage of pay fines to the federal government.

    It sounds like he is trying to avoid the cost of paying for more comprehensive coverage and/or the fees.

    signature image

    Chew86

  • If he is already covering the employees is there an extra cost now or is he able to take advantage of the new law? My insurance knowledge is about as deep as I get a bill when I go to the doctor and sometimes it is paid and sometimes not.

    He made it sound like a bad thing but it sounds like it could save him a lot. Of course the risk of losing good employees seems to be there.

    shaunsimpson

  • shaunsimpson said...

    If he is already covering the employees is there an extra cost now or is he able to take advantage of the new law? My insurance knowledge is about as deep as I get a bill when I go to the doctor and sometimes it is paid and sometimes not.

    He made it sound like a bad thing but it sounds like it could save him a lot. Of course the risk of losing good employees seems to be there.

    If he already offers full coverage under the current plan, there shouldn't be much change other than the likely rise in premiums. But it sounds like he's already meeting the requirements for a business over 50 employees... So I'm not too sure where he would see a huge increase though I'm still confused as hell about the bill.

    signature image

    Chew86

  • shaunsimpson said...

    I promise you this is not a made up story. It is a printing company. He said that the it would make sense since he would need to stay under 50. I don't know how they will since they already have insurance that they contribute. It very well could be that he will save money by getting rid of insurance and just putting it on employees to get their own? If this is the case than it would Benifit smaller companies. I really don't know the answer.

    Ignore minister he seems to be on the rage most of the time.

    Here are a couple of fact sheets which should help answer your questions.

    http://www.healthcare.gov/news/factsheets/2010/06/increasing-choice-and-saving-money-for-small-businesses.html
    http://www.healthcare.gov/news/factsheets/2011/08/small-business.html

    Though often asked, God does not take sides in politics or college football.

    TimMcM

  • Thanks Tim.

    shaunsimpson

  • shaunsimpson said...

    A friend of mine owns a multistate business. I was out to dinner with him and 12 others so I didn't get into it, but he said that he is going to have to lay off 5 people to get under 50 employees in Columbus and is going to have to split his company into three companies - one for each state.

    What are the costs and why is this beneficial? Or are the details even known yet?

    Here is what's in the ACA. Businesses have all kinds of breaks.

    Large Business
    Several parts of the Affordable Care Act affect big businesses. There are important provisions related to tax credits and reporting, early retiree coverage, grandfathering rules, and more. See the questions and answers below for more information.

    What is considered a large business?
    What insurance coverage is exempt from the law?
    Do I have to provide health insurance to my employees?
    How does the law affect tax policies?
    Can I get financial help for providing health insurance to early retirees?
    Can I provide financial help to employees who contribute to their health insurance premiums?
    Do I have to report the cost of insurance in my employees’ W-2 forms?
    What is considered a large business?
    You are generally considered a large business if you have more than 50 employees.

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    What insurance coverage is exempt from the law?
    Job-based coverage that was in effect on March 23, 2010 is exempted from certain provisions in the law. Learn more about “grandfathered” health plans.

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    Do I have to provide health insurance to my employees?
    The law does not require employers to provide health insurance.

    Starting in 2014, large businesses (those with 50 or more full-time workers) that do not provide adequate health insurance will be required to pay an assessment if their employees receive premium tax credits to buy their own insurance. These assessments will offset part of the cost of these tax credits. The assessment for a large employer that does not offer coverage will be $2,000 per full-time employee beyond the company's first 30 workers.

     The Department of Health and Human Services estimates that fewer than 2% of large American employers will have to pay these assessments. 

    To learn more read the Employer Bulletin on Automatic Enrollment, Employer Responsibility, and Waiting Periods.

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    How does the law affect tax policies?
    Visit the IRS website to learn more about taxes and the Affordable Care Act.

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    Can I get financial help for providing health insurance to early retirees?
    Yes. Employer-based plans that provide health insurance to retirees ages 55-64 can now get financial help paying for high-cost early retirees through the Early Retiree Reinsurance Program. This program is designed to lower the cost of premiums for all employees and reduce employer health costs. 

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    Can I provide financial help to employees who contribute to their health insurance premiums?
    For lower-income employees who spend between 8% and 9.8% of their income on premiums, large employers can provide the employees vouchers equal to the amount of the employer’s premium contribution. This allows the employee to get financial help buying insurance in the Affordable Insurance Exchanges at no additional cost to the employer. This means that previously uninsured low-income workers will gain coverage and their employers will harvest the improved productivity that goes with it.

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    Do I have to report the cost of insurance in my employees’ W-2 forms?
    Employers do not have to report the cost of insurance on employee W-2s in 2011. This reporting is optional in 2011.

    The reporting requirement is intended to be informational and provide employees with greater transparency into health care costs. The amounts reported are not taxable.

    Learn more about the W-2 reporting deferral from the IRS.

    Back to top

    dave1954