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What Health Insurance Exchanges Mean For Small Business Owners

Posted on: February 12, 2014 By: Kevin Tavakoli

Under the Affordable Care Act, all Americans must have health insurance coverage or face the consequences in the form of a tax penalty. As a result of this law, the ACA requires that states make health insurance exchange marketplaces available where health insurance coverage is available for individuals and small businesses.

In California, the small business marketplace is known as SHOP, or Small Business Health Options Program. This means that small business owners have two options when it comes providing insurance for employees. They can keep existing coverage or buy from the SHOP marketplace.

Small businesses benefit from using the marketplace as they may qualify for a tax credit to cover some of those employee health care costs. If a business has less than 25 full-time employees who make under a certain amount of money per year, then up to 50 percent of employee health care costs is available as a tax credit.

For more information on small business insurance options in the greater Los Angeles, California area, contact Save-On Health Insurance Services today.

How Obamacare Defines a Small Business for Insurance Plans

Posted on: January 8, 2014 By: Kevin Tavakoli

Obamacare, otherwise known as the Affordable Care Act, created new rules for defining what exactly is a small business for purposes of insurance. It’s a little confusing because there is more than one definition in the act. Following is a breakdown of the differences that affect businesses of different sizes:

  • A business with fewer than 50 full-time equivalent employees are considered to be a small business for the purposes of the act. A full-time equivalent employee can consist of four employees working 10 hours a week each for a total of 40 hours. In essence, a business can have 100 employees, but if the sum total hours are less than 2,000 man-hours a week, the business is considered to be a small business.
  • Businesses with less than 25 full-time equivalent employees making yearly wages of less than $50,000, and providing health insurance, may be able to qualify for a health insurance tax credit of up to 35 percent, and up to 50 percent in 2014. In order to determine the average yearly wage, the sum total wages need to be added together, then divided by the amount of employees. 

Are you in the Los Angeles, California area and need an insurance policy for a specific need? Contact Save-On Health Insurance Services, Inc. today to speak to an agent!