Health Care Reform
The Patient Protection and Affordable Care Act or Healthcare Reform will have an impact on all employers in California. With the election over it is almost a forgone conclusion that the Act will be implemented over the number of months. There are some benefits for individuals and business with 100 or fewer employees.
If you can't afford or can't qualify for insurance, you'll have new options starting in 2014. The Act sets up health insurance exchanges starting in 2014. The exchange will offer small businesses a wide choice of plans that meet standards for coverage and will provide information to small businesses and their employees to help them make educated choices about the policies they are purchasing.
If you're struggling financially - as many self-employed do - you may qualify for a government subsidy or Medicaid. Some of the downsides are; there are no caps on health insurance premiums, so expect some rate increases. If you have more than 50 employees, you'll have to provide coverage or pay a fine beginning 2014. As of 2013, there'll be new taxes on some types of income typically received by successful small business owners.
Here are a few reminders of what is coming in 2013 and beyond
Effective 2013 a statutory cap of $2,500 will be placed on the amount of funds an employee can save in a Flexible Spending Account.
Pre Existing Conditions
Effective 2014 Employer's group health plans will be required to eliminate the pre-existing condition exclusions. The plan will also have to eliminate annual limits on essential benefits coverage for adults. Employers will be required to eliminate waiting periods beyond 90 days when enrolling employees in a group health plan.
Effective March 1, 2013, employers will be required to give a notice to their employees that they may be eligible to participate in one of the state-based health-insurance exchanges.
Now more than ever businesses large and small need the advice of an insurance healthcare professional.