Small businesses might be eligible for tax credits up to 35% of the cost of the premiums if they have less than 25 employees whose average annual salary is below $50,000. The employer is required to pay more than half of the premium for the employee to qualify. As the number of employees increases and salaries rise, the credits for the employer decreases.
Small businesses have to provide insurance to their employee’s children until they are 26 under the new healthcare laws. In the past, an insurer could stop providing coverage to the children when they turned 23. Insurance companies could refuse coverage until 2014 if the child can obtain insurance through school or a job.
As of January 1, 2011 Health Savings Accounts and Flexible Spending Accounts cannot be used for over-the-counter-medications. Also, the penalty for purchasing non-qualified items with your Health Savings Account will increase to 20%. In 2013 there will be a cap of $2,500 for pre-tax contributions.
Health plans will no longer cap lifetime benefits for certain necessary services. Coverage can’t be taken away if the employee intentionally misrepresents or is fraudulent. Health Plans are also eliminating pre-existing condition clauses for children.
In 2013, individuals making more than $200,000 and families making more than $250,000 will have to pay the government an additional 0.9% payroll tax. They will also pay an additional 3.8% on certain investment income.
In 2014, small businesses (up to 50 employees) and individuals will get help in finding coverage through the open insurance exchange. The government is requiring all Americans and legal residents to have medical insurance or pay the $95 penalty. Any business with 50 or more employees will be required to provide insurance or pay a penalty as well.