Affordable Care Act for Self-Employed Individuals According to SBA and the
Department of Labor
Does anyone really know what Obama Care means? NO? Well, I suggest we look very
carefully into the pros and cons of the legislation. The SBA has presented information
about the Implementation of the Affordable Care Act.
According to the Individual Shared Responsibility provisions of the Affordable
Care Act each individual must have basic health insurance coverage (known
as minimum essential coverage), qualify for an exemption, or make a shared
responsibility payment when filing a federal income tax return as an additional
tax. Individuals will not have to make a payment if coverage is unaffordable,
if they spend less than three consecutive months without coverage, or if they
qualify for an exemption for several other reasons, including hardship and
religious beliefs. Minimum essential coverage includes, at a minimum, all of
the following categories: Employer-sponsored coverage (including COBRA and
retiree coverage), coverage purchased in the individual insurance Marketplaces,
Medicare Part A coverage, Medicaid coverage, Children's Health Insurance
Program (CHIP) coverage, certain types of Veterans health coverage, and
TRICARE. It does not include certain specialized coverage such as only for
vision or dental care, workers’ compensation, or coverage only for a specific
disease or condition. (Source: SBA.)
• Small Business Health Care Tax Credits
The small business Health Care Tax Credit helps small employers afford the cost
of health care coverage for their employees and is specifically targeted for those
employers with low- and moderate-income workers. The credit is designed to
encourage small employers to offer health insurance coverage for the first time
or maintain coverage they already have. Since 2010, businesses that have fewer
than 25 full-time equivalent employees, pay average annual wages below $50,000,
and that contribute 50% or more toward employees’ self-only health insurance
premiums may qualify for a small business tax credit of up to 35% to help offset
the costs of insurance. In 2014, this tax credit goes up to 50% and is available to
qualified small employers that participate in the Small Business Health Options
Program (SHOP). Eligible small employers can claim the current credit through
2013, and the enhanced credit can be claimed for any two consecutive taxable
years beginning in 2014 through the SHOP.
Small businesses with generally up to 50 employees will have access to the new
health care insurance marketplaces through the Small Business Health Options
Program (SHOP). Currently, small businesses may pay on average 18% more
than big businesses for health insurance because of administrative costs. SHOP
will offer small employers increased purchasing power to obtain a better choice of
high-quality coverage at a lower cost. Costs are lowered because small employers can pool their risk. To enroll, eligible employers must have an office within the
service area of the SHOP and offer SHOP coverage to all full-time employees. In
2016, employers with up to 100 employees will be able to participate in SHOP.
PROS:
ß According to Washington, 32 million Americans are currently without health
insurance. This act will allow a larger portion of the general population will now have
access to the coverage they need.
ß Patients with pre-existing conditions cannot be denied coverage by insurance
companies, and companies can no longer drop someone once they get sick.
ß College students can stay on their parents’ plans until the age of 26.
ß The federal government will pay the states to allow low-income individuals to
enroll in Medicaid
ß The Medicaid “doughnut hole” gap in coverage will be eliminated by 2020.
ß Each year, $125 million will go towards funding school-based health centers and
programs to reduce teen pregnancy.
ß States are required to set up insurance exchanges to make it easier to find the best
deals on private health insurance.
ß If an insurance company denies someone coverage, that person can go to an
external appeals process.
ß The number of bankruptcies caused by health-related issues will be severely
reduced.
CONS:
ß The intrusion of the federal government into the practice of medicine.
ß 18 million of the uninsured will be forced to go under Medicaid, while the rest
will have to accept another government program. Even so, millions will remain
uninsured.
ß By 2019, an estimated 4.8 million seniors will be forced out of Medicare
Advantage.
ß Medicare will be cut by $528 billion dollars.
ß Taxes will be increased (especially on high-income individuals).ß By forcing States to accept federally-mandated health insurance, the Act violates
States’ rights.
ß Some speculate that you can be thrown in jail for failure to pay your health
insurance taxes.
There must be a full understanding of this legislation before implementation. It seems
to have more “bugs” than Orkin and Terminix combined. Perhaps, the plan should be
delayed in its entirety, until it can be simplified and presented to the people to vote for
or against, what amounts to a total social medicine legislation. Washington, are you
listening to the people?
