What Businesses Need to Know
I'm a Business: What does the Affordable Care Act mean for me?
What is needed now and why purchase insurance for employees? Here's where you can get answers.
|Employers with 50 or more full-time employees||If you do not offer health insurance that employees can afford, or that offer a health insurance plan that does not meet certain requirements, you may receive a fine.||This penalty will start being imposed in 2015.||Learn more about how to prepare for 2015 by visiting healthcare.gov/businesses/|
|Employers with 1 to 50 full-time employees||Covered California, our state insurance marketplace, has created the Small Business Health Options (SHOP) Marketplace where small businesses can learn about low-cost plans available now for your employees and tax breaks available to help certain small businesses purchase insurance.||Opportunities available now!||Go to Small Business Health Options (SHOP) at the Covered California Marketplace to learn more.|
|All Employees||Under the Affordable Care Act, employers covered by the Fair Labor Standards Act (generally, those firms that have at least one employee and at least $500,000 in annual dollar volume of business), must provide notification to their employees about the new Health Insurance Marketplace; inform employees that they may be eligible for a premium tax credit if they purchase coverage through the Marketplace; and advise employees that if they purchase a plan through the Marketplace, they may lose the employer contribution (if any) to any health benefits plan offered by the employer.||By October 1, 2013, employers are required to provide this notice to all current employees and to each new employee at the time of hire beginning October 1, 2013, regardless of plan enrollment status (if applicable) or of part-time or full-time status.||The Department of Labor has provided employers with two sample notices they may use to comply with this rule, one for employers who do not offer a health plan and another for employers who offer a health plan for some or all employees. Download guide on how to talk to employees|
Why should small businesses purchase insurance for their employees?
- It's affordable.
- There are tax credits available to small businesses with fewer than 25 full-time employees.
- The competition in this new marketplace is resulting in lower cost plans that make options for small businesses more affordable.
- It’s easy.
- Everything you need is available via phone or online.
- Covered CA will handle premium collection, enrollment, and plan payments.
- Your employee will be able to choose their own plan.
- It attracts top talent.
- Providing health insurance to employees helps you recruit and maintain good workers.
- You now have a level playing field. SHOP gives you access to an insurance pool available to all small businesses in California.
- This gives you greater purchasing power, more health plan choices, reduced premiums and lower costs.
Helpful links for businesses of all sizes:
- Tax credits available to small businesses (pdf)
- General Small Business FAQ
- Federal resources for businesses
- U.S. Small Business Administration articles regarding the key provisions of the Affordable Care Act for businesses of different sizes
- Kaiser Family Foundation flowchart of Employer Responsibility under the Affordable Care Act
- Kaiser Family Foundation implementation timeline