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Health Care Reform and Small Business

Jan 10th, 2011

health care reformMany small business owners are very upset with the new health care reform bill because of what it is going to do and how it is going to hurt the small businesses across the country. Gone are the days of caps on health insurance premiums. What does this prompt as the next logical step? The increase in annual health insurance policies from the low cost health insurance to the individual health insurance to the group health insurance that is affordable to the larger corporations.

Many of the small business owners, freelance entrepreneurs and others will stop and close their doors because of the high cost and unreasonable demands being placed on the new health insurance of today and the future. Those small businesses that can afford the upfront expense will become incorporated or file for a LLC, limited liability company. Many of the other health insurance changes that are coming in the next few years are.

1.    Health care tax credits to small business with fewer than twenty five employees

2.    The establishment of the Small Business Health Insurance Options Programs

3.    Federal subsidies to help the small businesses adopt

4.    Medicaid health insurance option for new small businesses

5.    Mandatory employer provided low cost health insurance coverage

6.    Mandatory personal individual health insurance coverage

7.    Elimination of pre-existing condition waiting periods

8.    Adult children up to age twenty-six can remain on parent’s health insurance

9.    Elimination of lifetime health insurance limits

10. Employers are now mandated to include preventive health care

11. Increase in the Medicare to 2.35% and dividends to 3.8%

12. 40% tax on all Cadillac health insurance plans

Many small businesses are very concerned about what the full impact of the health care reform bill is going to do to their business and wonder if they will be able to remain in business. The mandates are going to be very costly, perhaps too costly for the majority to continue in business in this country.

Just as many of the medical health care physicians are closing, their doors and going out of business the same will apply to the service sector small businesses. Some that can afford all the new health insurance changes will remain. Others will close or move out of the country and begin their small business under a friendlier atmosphere.

Those independent, small business owners who are considered sole proprietors will not be eligible under the new health care reform bill for any government tax credits. These are the individuals who will really need to do some thinking.

"Vista Health Solutions" www.nyhealthinsurer.com Tel (888)215-4045 Email info@nyhealthinsurer.com