Health Care Reform Details Emerge with 'Play or Pay' Requirements, Leaving Some Wondering about Small Business Owner Insurance
Minneapolis, Minn. (Vocus) July 3, 2009
The health care reform bills in being considered by the House, which has entrepreneurs worried about how this will affect health insurance for small groups and business insurance premiums. This latest development is prompting entrepreneurs to shop around for lower rates and more complete coverage by using sources such as Small Business Health Insurance Network.
Currently the plan proposes that employers need to pick up at least 72.5 percent of the cost of health insurance premiums for full-time employees. If a business chooses not to provide the minimum coverage required by the federal government, they will need to pay a fee based on 8 percent of their payroll.
There has not been a threshold determined for the size of a business. However, some are concerned about small business owner insurance. Rising rates of business insurance premiums and health insurance for small groups have been difficult for many entrepreneurs to manage.
According to PricewaterhouseCoopers, health insurance premiums increased by 9.2 percent for US businesses this year alone. The same increase is expected for next year, with small businesses typically taking on much higher increases.
On June 19, the chairmen of three House committees with jurisdiction over health care introduced their draft legislation that gave information about how the new plan would affect small business owner insurance.
Under the proposed bill, small businesses could choose insurance plans from a national exchange that would include a government run plan and private insurers. In addition, small business owners would be able to utilize tax credits to help make the coverage more affordable.
To sort out the major details of the plan, there are some bullets that may be helpful to note.
- Small businesses and individual can choose to be insured from either private or public plans listed among a national health insurance exchange.
- If a small business cannot afford coverage, tax credits are available.
- The “play or pay” fee refers to the line item that states employers that offer coverage would pay for 72.5 percent of the premium costs for full-time employees or pay a fee based on 8 percent of their payroll to the government.
- The size threshold for businesses to be exempt from the “play or pay” fee has yet to be determined.
About the Small Business Health Insurance Network:
The Small Business Health Insurance Network is your premier choice for small business health insurance and self employed health insurance throughout the United States. Serving business owners nationwide; we access and provide insurance quotes from multiple healthcare providers.
Public Relations Specialist