The Patient Protection and Affordable Care Act will benefit small businesses in numerous ways, according to a White House blog post by Ari Matusiak, special assistant to the president and director of private sector engagement.
Mr. Matusiak details five main ways the PPACA will help small employers and their staffs.
1. More transparency and purchasing power
The new small business health insurance options program marketplaces allow small groups to shop for coverage in a competitive marketplace with increased transparency. The new markets also give small businesses as much purchasing power as larger entities, Mr. Matusiak wrote.
2. New tax credits
In 2014, small businesses buying coverage through the new health insurance exchanges can potentially qualify for tax credits covering up to 50 percent of the cost of their health plans.
3.
Small groups can pool risks and subsequently reduce administrative complexity through the exchanges, according to Mr. Matusiak.
4. More ease in comparing, purchasing and offering coverage
The small business exchanges will have Web portals to make comparing and purchasing health insurance plans easier. Offering coverage to employees will also be simpler from an administrative standpoint.
5. Bigger rewards for workplace wellness
Starting in 2014, the PPACA increases the maximum reward for employers with health-contingent wellness programs from 20 percent to 30 percent of the coverage cost. Additionally, the maximum reward for smoking prevention or reduction programs will amount to as much as 50 percent.
The small business and individual health insurance exchanges will open for enrollment Oct. 1.
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