Small companies with under 30 employees

[nevergiveup]

Tonight on Rachel's show Howard Dean said that in this bill all companies with fewer than 30 employees would not pay anything for health care expenses. I think he may has misspoke. Does anyone know where to look for details on this?

[laughingliberal]

1. I'm pretty sure that's true

I know the House and Senate both provided exemptions for small businesses who would not be required to provide benefits or pay a fine if they didn't. The criteria for exemption varied between the 2 bills but they both included one. That's all I know at this point.

[DFLforever]

2. They could and they'd get help with the costs but they're

not required to.

[grantcart]

3. I think what he said was

1) that small employers would no longer be required by law to include it.

He thinks this is good because it unlinks health care from employment.

2) companies that do provide it would be able to get much better rates by joining the exchanges.

3) low income workers that are covered would help the company get a subsidy for covering them


That was my understanding, there was also some other tax advantages as well.

[laughingliberal]

4. Found it. Dean had it exactly right!

Employer Mandate Increases penalties for large employers (50+ workers). Large employers have to pay a fee of $2,000 per FTE if they do not offer coverage and have at least one FTE that receives a premium tax credit or cost-sharing subsidy. Large employers that offer coverage and have at least one FTE that receives a premium tax credit will pay penalties of $3,000 per employee receiving a premium credit. Disregards first 30 workers employed by the employer in calculating the amount of the penalty.

http://wonkroom.thinkprogress.org/2010/03/18/new-cbo-score-recon/

[nevergiveup]

6. I really appreciate your help on this.

I was hearing what I wanted to hear instead of what Dean was really saying.

[SmileyRose]

5. Dean is right - it's all carrot and no stick for employers with under 30.

there are subsidies to be had if they do provide insurance coverage and cost savings by buying in the exchanges and no penalties if they just cannot afford to provide coverage.

[Gaedel]

7. If you expand your business...

do it as a series of separate corporations.

Like everything else in the tax code, it will be gamed.

[Emit]

8. More: Provide small employers with no more than 25 employees with tax credits

Senate Bill
Patient Protection and Affordable Care Act
(H.R. 3590)


Premium subsidies to employers:

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 the total premium cost or 50% of a benchmark premium. 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 25% of the employer’s 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.

Create a temporary reinsurance program for employers providing health insurance coverage to retirees over age 55 who are not eligible for Medicare. Program will reimburse employers or insurers for 80% of retiree claims between $15,000 and $90,000. Payments from the reinsurance program will be used to lower the costs for enrollees in the employer plan. Appropriate $5 billion to finance the program. (Effective 90 days following enactment through January 1, 2014)


Employer Requirements: Assess employers with more than 50 employees that do not offer coverage and have at least one full-time employee who receives a premium tax credit a fee of $750 per full-time employee. Employers with more than 50 employees that offer coverage but have at least one full-time employee receiving a premium tax credit, will pay the lesser of $3,000 for each employee receiving a premium credit or $750 for each full-time employee. For employers that impose a waiting period before employees can enroll in coverage, require payment of $400 for any full-time employee in a 30-60 day waiting period and $600 for any employee in a 60-90 day waiting period. (Effective January 1, 2014)

Exempt employers with 50 or fewer employees from any of the above penalties.

House Bill
Affordable Health Care for America Act
(H.R. 3962)

Employer requirements:

Eliminate or reduce the pay or play assessment for small employers with annual payroll of less than $750,000:
Annual payroll less than $500,000: exempt
Annual payroll between $500,000 and $585,000: 2% of payroll;
Annual payroll between $585,000 and $670,000: 4% of payroll;
Annual payroll between $670,000 and $750,000: 6% of payroll.
(Effective January 1, 2013)

Premium Subsidies to Employers: Provide small employers with fewer than 25 employees and average wages of less than $40,000 with a health coverage tax credit for up to two years. The full credit of 50% of premium costs paid by employers is available to employers with 10 or fewer employees and average annual wages of $20,000 or less. The credit phases-out as firm size and average wage increases and is not permitted for employees earning more than $80,000 per year. (Effective January 1, 2013)

http://www.kff.org/healthreform/sidebyside.cfm