How is the Affordable Care Act Impacting Your Michigan Small Business?

How is the Affordable Care Act Impacting Your Michigan Small Business?

How is the Affordable Care Act Impacting Your Michigan Small BusinessAs the Affordable Care Act (ACA), also called the Health Care Reform, has begun to effect businesses and individuals, there has been a fair amount of confusion. The intent of this Act is to ensure that all Americans have access to affordable health insurance, although, as with anything else, this comes at a cost. For example, large employers are not required to provide health insurance to their employees, or else be subjected to penalties and fees. What about your small business though; will you be required to provide Michigan small business health insurance?

If you are a small employer with less than 50 employees, you will not be facing any new requirements under the Affordable Care Act. Many small businesses choose not to offer health insurance benefits to their employees because they believe it’s too expensive and think that offering the benefits hurts their bottom line instead of helping it. It’s true that providing Michigan small business health insurance is costly, there is no denying that. However, offering this to your employees could actually help your business.

Under the Affordable Care Act, small businesses will gain tax advantages by offering Michigan small business health insurance. Doing so allows you an income tax deduction for the contribution, so that your out-of-pocket cost is less than the value of the benefit to the employee. Also, if your company is a smaller business, with few than 25 employees, you may even be eligible for a tax credit.

Another factor of offering group health insurance that many small business owners see as a benefit is the ability to avoid health care reform assessments. The Patient Protection Act and the Affordable Care Act, plus related legislation, requires employers with 50 or more full-time employees to offer adequate health insurance coverage or be subject to assessment if their employees receive premium tax credits to buy their own insurance. This mandate will go into effect beginning in 2015.

Tax breaks and assessments are not the only reason that it may be a good idea for your company to offer Michigan small business health insurance. Offering benefits of this type sends the message to your employees that they are valued. Employees feel as though they are being rewarded above and beyond their regular pay, which in turn promotes loyalty and a stronger work ethic.

At Capital Insurance Group, we understand the risks and exposures you face every day. As Michigan Business Insurance experts, we see our role as helping clients intelligently assess risks, analyze options, and apply the best short-term and long-term solutions available. Please contact us today at (888) 296-0418 to learn more about our Michigan Small Business Health Insurance Coverages and other Michigan Employee Benefits we offer.