Think Tanks Offer Rosy View of Small Business Health Insurance in 2014
September 2010
Reports released this week by both the Commonwealth Fund and the Rand Corporation suggest that in 2014 new
small business health insurance laws and recent tax incentives will make it much easier for businesses to offer coverage to their employees.
According to the Orange County Register the
healthcare bill has already begun to incentivize small business owners who want to offer their employees some form of medical coverage. For the most part the recent establishment of these tax incentives is cited as the first of many mandates that will make small business health insurance cheaper.
Business owners can get up to 35% of their insurance costs back, and potentially 50% between 2014 and 2016.
By this time all Americans will be legally required to purchase
medical coverage. Larger companies will be required to offer their employees insurance or pay a fine, while smaller companies will be exempt.
Facts on:
Small Business Health Insurance
Did you know...
Only 60% of small businesses offer their employees some form of medical coverage?
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Both think tanks also suggest that the largest drop in employer provided health insurance has come from businesses who can't keep up with the rising costs of small business health insurance. Rand states that "60% of small businesses offer health insurance," leaving another 40% with employees that aren't protected in the event of an illness or accident.
The health insurance pools predicted to be up and running will reportedly offer medical coverage premiums that won't jump from year to year, allowing small business owners to better plan for their bottom line in years to come.
Currently insurance premiums for employers have jumped 3% to an average of $13,770 per worker, leading struggling companies to shift a greater burden of coverage to their employees, if they can offer coverage at all.
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