How small businesses are grappling with the Affordable Care Act a year later

Last October 1st, the website for the Affordable Care Act healthcare exchanges premiered, and many small business owners hoped that the new system would provide some relief for the staggering costs healthcare insurance was laying across their shoulders. Unfortunately, the website rollout performed more poorly than expected and the implementation of the new healthcare law - and any relief it would give small businesses - was significantly delayed. Because the website didn't function, not enough people were enrolled by the target date in December, and the administration pushed back numerous deadlines and weakened compliance regulations. How this will play out for individual business owners, we will only discover with the passage of time and as the effects of the new law come down this compromised pipeline.

At this time the requirement that small businesses must provide insurance coverage to their full-time employees only applies in 2015 to businesses that have 100 or more employees (full-time being defined as working an average of 30 or more hours per week). The cost of this insurance must also be less than 9.5 percent of their income. Businesses have the option of providing their full-time employees with coverage or paying a per-employee assessment fine. In 2016, businesses with over 50 full-time employees will have to be compliant or face paying the fine.

Since 96 percent of U.S. businesses have fewer than 50 full-time employees, most small businesses will not have to worry about Affordable Care Act compliance for the foreseeable future, although many businesses have cut either hours or workers in anticipation of the higher costs to them either way. Ironically enough, many government jobs in schools, city government, and libraries have also been cut because of budgetary constraints.

Meanwhile, the costs of both healthcare and health insurance continue to climb. Many employers already offer their workers insurance benefits and are finding it challenging to pay higher costs in an economy that continues to stagnate. Many of these are choosing to offer lower-cost, higher-deductible plans to their employees. Thirty-two percent of firms will only be offering high-deductible plans, shifting more costs to their workers. As long as workers are offered the option of a plan that meets Affordable Care Act guidelines, businesses will not have to pay a fine - regardless of whether employees choose to enroll in these plans.

Some employers are offering incentives for workers who voluntarily shop around for cheaper healthcare options or who take part in lifestyle betterment programs or utilize their preventative care more. High cost, high benefit programs will be taxed beginning in 2018, so employers who have provided their workers with "Cadillac" plans have incentives to either educate their workers on the costs of these plans or slowly transition them to new health insurance realities.

Other businesses have decided to forego offering insurance altogether and pay the fines which are less expensive than the cost of health insurance. As yet there is not consensus on what the best options are as the administration continues to delay mandates and economic conditions change.

Affordable Care Act Hopes to Further Even the Playing Field for Small Businesses

The Affordable Care Act is finally coming to fruition. As of today, October 1st, businesses both big and small will have to provide health care information to their workers under law--no business will be required to provide health care benefits though, despite some fear-mongering in the media. Given the publicity in the media about the implementation of the ACA, one would think most employers would be up-to-speed on the ACA. But very few business owners understand what is actually happening with this new law. Actually, very few citizens understand it at all. Even those who have made an attempt at sifting through the new regulations have found that the beast has an intricate network of even more intricate parts, making it a very daunting task.

Those looking to learn more do have options, though. Websites like BusinessUSA--a federal website--can help those looking to learn more about their specific circumstances. Using the wizard provided on this site directed me to some very helpful information. For instance, there will be Health Insurance Marketplaces that open today. One of these will be specific to small businesses--it's called the Small Business Health Options Program or SHOP Marketplace. The health coverage options provided there will be geared toward small businesses and it seems that four categories of plans will be available. According to the website, the plans have comparable benefits to one another but give employers the ability to choose a package based on how the plan and beneficiaries will share health care expenses.  A restaurant owner with 30 employees may find it more feasible to offer a plan that a auto repair shop manager would pass on.  Or vice versa.

The U.S. Small Business Administration is doing its best to make sure that small businesses are apart of what's going on by providing pertinent information. One of the major reasons that the ACA was put into place was to make sure that small businesses receive affordable health care options--according to the SBA, the largest concern for small businesses has been just that: access to affordable health care. And now that it's possible, larger employers may no longer be the only ones getting access to cheaper, more predictable coverage. This will even the playing field, not only by making health care cheaper, but also by making small businesses more attractive to prospective employees.

Some of the obstacles that small businesses faced when it came to health coverage included issues regarding individuals with pre-existing conditions and increased rates for coverage that included older workers, female workers, and workers with chronic issues. Under the ACA, insurance companies will no longer be able to hold a person's pre-existing conditions or chronic issues against them. This means that higher rates will not exist for these individuals and their coverage cannot be denied. The same goes for women and limits will be in place when increasing premiums for coverage that encompasses older workers. The new system will also make sure that risks are mitigated by creating groups similar to those seen within large businesses, making sure that care stays reasonably priced. Feel free to learn more via a slide show posted here by the SBA. It's in your best interests to keep yourself in the loop as a small business owner.