Health Care Reform And Switching Things Up For Small Businesses

"Health insurance for all" is the four-word phrase that's on the tip of everyone's tongue lately. There are also those who complain, calling change communistic or socialist since it comes with greater government oversight on how health programs will be managed from here on. While President Barack Obama may have signed the bill for a reform on health care, pending the amendments and 'fixes' to be discussed by legislators, there's still a lot of tension in the air about it.

Yet, this tension, this perceived mound of controversy that swirls around the bill is often diminished by the thought of what it can offer individuals and small businesses everywhere. It also helps that on average the United States spends close to $6,000 per individual living in the country in order to help subsidize the costs of health treatments, costs largely blamed on unfair practices by healthcare industry professionals, and that people would love to find a way to trim these down.

Small businesses are eyed as the future, and in relation to this, the law now provides for special benefits for them. Before, small businesses could not easily acquire health insurance for its employees. This ends now. The current health industry reform law is expected to open more doors of opportunity for them.

How is this so? Here are some significant points.

  • What makes a small business? Under the rules of the law, a firm that has fewer than 100 employees should be able to receive the benefits of tax cuts by up to 35%. This money is meant to go towards helping the firm provide for health insurance to its employees. There are also some areas where this limit is said to be capped at 50 employees, and inclusive of part-time workers who are under payroll.
  • The states are projected to set up the Small Business Health Options Programs, or 'SHOP Exchanges.' This will let small businesses in a region pool together to buy insurance at a small cost. This system is meant to be set in before 2014.
  • Using state exchanges, tax costs are expected to go down by 8% to 11%, with tax credit boosts affecting about 12% of all Americans.
  • It will become a law for businesses to provide coverage for employees. Failure to do so can result in fines of up to $750 per employee, thus deterring them from refusing to provide coverage.

More policy shifts are expected to take place as the House deliberates on the merits of the system.