Health Reform for Small Businesses

Press Release

Health Reform for Small Businesses

The Affordable Care Act
Saves Money and Gives Small Business Owners More Affordable Insurances Choices
Increases Quality, Affordable Options for Small Businesses
 Provides small business with up to 100 employees access to state-based Small Business Health Options
Program (SHOP) Exchanges. These Exchanges would include web portals that provide standardized,
easy-to-understand information that make comparing and purchasing health care coverage easier for
small business employees, and reduce the administrative hassle that small businesses currently face in
offering plans.
 Allows small businesses growing beyond the upper employee limit in the SHOP Exchange to continue to
purchase health insurance through the Exchange.
 Provides states flexibility to allow businesses with more than 100 employees to purchase coverage in the
SHOP Exchange, beginning in 2017.
 Streamlines health plans to keep premiums lower by instituting a premium rate review process and
setting standards for how much insurance companies can spend on administrative costs.
Small Business Health Care Affordability Tax Credits
 Provides tax credit to small employers with fewer than 25 full time equivalent employees and average
annual wages of less than $50,000 that purchase health insurance for employees. The maximum credit
will be available to employers with 10 or fewer full time equivalent employees and average annual
wages of less than $25,000. To be eligible for a tax credit, the employer must contribute at least 50
percent of the total premium cost.
o For 2010 through 2013, eligible employers will receive a small business credit for up to 35 percent
of their contribution toward the employee's health insurance premium. Tax-exempt small
businesses meeting the above requirements are eligible for tax credits of up to 25 percent of their
contribution.
o In 2014 and later, eligible employers who purchase coverage through the Exchange can receive a
tax credit for two years of up to 50 percent of their contribution. Tax-exempt small businesses
meeting the above requirements are eligible for tax credits of up to 35 percent of their contribution.
 An estimated 4 million small businesses nationwide could qualify for the tax credit, which will provide
a total $40 billion in relief for small firms over the next 10 years. Moreover, millions of workers at
small firms and their families would be eligible for their own tax credits to purchase coverage through
the new health insurance Exchanges if their firms do not offer coverage.
Provides Immediate Information to Small Businesses on Affordable Health Care Options
 Establishes an Internet portal with information about affordable and comprehensive coverage options.
The web portal will also provide information to small businesses about available health coverage options,
including information on reinsurance for early retirees, small business tax credits, and other information
specifically for small businesses regarding affordable health care options.
Administrative Simplification
 Accelerates the adoption of uniform standards and operating rules for the administration of health
insurance plan transactions, saving time, clerical burdens, overhead costs for doctors, patients, health
plans, and businesses alike.
Security and Stability that Promotes Entrepreneurship
 Ends the discriminatory insurance industry practices of jacking up premiums by up to 200 percent
because an employee got sick or older, or because the business hired a woman.
 Reduces "job lock" -- the fear of switching jobs or starting a small business due to concerns over losing
health coverage -- by guaranteeing access to coverage for all Americans. This will encourage more
people to launch their own small businesses, or join existing small employers.
Ensures Employer Responsibility Exempts Small Firms
 Exempts all firms that have fewer than 50 employees -- 96 percent of all firms in the United States or 5.8
million out of 6 million total firms -- from any employer responsibility requirements. These 5.8 million
firms employ almost 34 million workers.
 Improves the transition into the employer responsibility policy by subtracting the first 30 employees
from the employer responsibility policy.
Ensures Small Business Administration Resource Partners Are Eligible for Awareness Grants
 Ensures small businesses are aware of the insurance options available to them by making Small Business
Development Centers and all Small Business Administration partners eligible for awareness grants,
including Women's Business Centers, SCORE, Minority Business Centers, Veteran Business Centers,
and others.
Reviews the Impact of Reform on Small Businesses
 Requires the Government Accountability Office (GAO) to specifically review the impact of Exchanges
on access to affordable health care for small businesses to ensure that Exchanges are indeed making a
difference for small business owners.
Adheres to Small Business Contracting Regulations
 Clarifies that agencies cannot waive the Federal Acquisition Regulation, which requires them to report
small business contracting numbers and meet small business contracting goals of 23 percent.
Clarifies Part-Time Worker Definition
 Defines a full-time employee is an employee who works on average at least 30 hours per week when
calculated on a monthly basis, which takes into account fluctuation in employee work hours from week
to week in a given month.
Small Business Representation on Workforce Commission
 Establishes a national workforce commission to gather information on the health care workforce and
better coordinate and implement workforce planning and analysis, and ensures that small businesses will
be represented on the commission.
Increases Access to Workplace Wellness Programs
 Authorizes grants to help small business employees participate in comprehensive workplace wellness
programs.

Source