How Does the Obamacare Law Affect Small Business Health Insurance

How does the Obamacare law affect small business
health insurance? Officially known as the Affordable Care Act,
or the ACA, the Obamacare law affects small business owners in several ways. It has, in many cases, driven down the costs
of employer coverage by changing the way premiums are calculated. It can affect your taxes. It may require larger employers to offer coverage
to workers.

Lets look at each of these in more detail. First, under Obamacare your health insurance
premiums are no longer based on the health or pre-existing medical conditions of the
people in your group. In the old days, sick coworkers could result
in increased premiums for everyone else, but small business health plans are generally
no longer underwritten in the same way. Now, your costs are mostly based on the ages
of your employees and the general health risks of the people in your local community or region.

This often results in lower premiums relative
to self-purchased coverage. Second, you could generally deduct monthly
insurance premiums from your businesss taxes before Obamacare, but the Obamacare
law also made special tax credits available to some businesses. If you have fewer than 25 employees, ask your
licensed agent about these credits when shopping for coverage. Third, you should know that under Obamacare,
only businesses with fifty or more full-time workers (or the equivalent in part-time employees)
are obliged to offer coverage or face a penalty.

That said, many small business owners still
opt to sponsor an employer-based plan for themselves and their employees. To learn more about your small business health
insurance options today, visit eHealth.Com.