How Will The New Health Care Bill Affect Businesses?
It’s the Number That Counts
Apparently, the number of employees a business has will determine how the health care bill will affect them. If you have a small business and employ 25 people or less, with the average wage being $50,000 or less, this bill will provide your small business with a big tax credit in the years 2010-2013. This bill will provide up to 35% tax credit for those employers who pay at least 50% of their employee’s healthcare.
The Requirements for the New Health Care Bill
In addition, the new health care bill would require that most of us in the US and residents who are legal, purchase essential, minimum coverage for themselves and their dependents. This new insurance would have to be obtained through their employer or through an agency that sells insurance to individuals.
However, if you are an employer and employ 50 or more employees, you will have to provide quality health insurance to your employees. For most businesses, this cost will be too much. Because the cost of providing quality insurance for employees is so high, some small businesses are discussing an idea where they form several separate companies in order to conduct business.
Additional Requirements and Costs
With this healthcare bill it seems the key number is 50; however, if you are a small business and have less than 50 employees, this bill may still affect you due to raised costs from suppliers who will have to provide health insurance, which will most likely raise their payroll expenses up to 50%.
Seniors Are Affected, Too
In addition, the health care reform bill 101 will affect seniors, too. Some seniors will lose Medicare benefits while other seniors will gain benefits that will come from the Medicare prescription-drug program. The basic concern for seniors with this bill is that government payments to Medicare Advantage will be cut by $132 billion over the next 10 years. This plan—Medicare Advantage plan—gets more person than the traditional Medicare.
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